19. Expense reimbursement
ADMINISTRATIVE SERVICES DEPARTMENT
CUPERTINO
CITY HALL
10300 TORRE AVENUE. CUPERTINO, CA 95014-3255
(408) 777-3220 . FAX (408) 777-3109
SUMMARY
Agenda Item No,
jq
Meeting Date: November 5, 2007
SUBJECT AND ISSUE
Adopt a resolution establishing an Expense Reimbursement Administrative Procedure for
City Council members, commissioners, and committee members and adopt a resolution
amending the Unrepresented Employees Compensation Program Training and Conferences
Policy,
BACKGROUND
A new state law requires cities to adopt a policy defining the activities and expenses that
are reimbursable to elected officials and appointed members of their commissions and
committees. It also states that unless reimbursement rates are established for such expenses,
then those expenses would be reimbursed at the Internal Revenue Service per diem rates.
Presently, there are travel and expense reimbursement policies for City employees but none
specifically for elected officials and appointed commissioners and committee members.
When public officials had submitted expenses for reimbursement, staff had applied the
employee policy to process the payment. However, governing bodies and associated
advisory boards must now follow a somewhat more restrictive and detailed policy than
current City guidelines.
The policy recommended by staff combines language from current City policy and uses
examples from the League of California Cities and other cities. Travel and expenses related
to the following activities would be considered reimbursable to Council members and
commISSIOners:
. Communicating with representatives of regional, state and national government on
City adopted policy positions;
. Attending conferences, seminars, and training designed to improve skill and
information levels;
. Participating in regional, state and national organizations whose activities affect the
City;
. Attending City events; and
. Attending functions of other local civic or community organizations where there is
a clear nexus between the event and the member's attendance as an official
representative of the City, Purely social events and service club meals are not
reimbursable.
19-1
Expense Reimbursement Policies
November 5, 2007
Page 2 of2
Travel costs include transportation, lodging, meals and other incidental expenses.
Depending on the situation, reimbursement rates on such costs would be tied to
government or group rates, median hotel prices per area, or mileage and per diem rates ~s
defined by the IRS.
At the next regular City Council or COmmISSIOn meeting, Council members and
commissioners would need to briefly report on publicly noticed meetings attended at City
expense.
Staff also recommends applying these new guidelines into the unrepresented employee
training and conferences policy.
FISCAL IMPACT
No fiscal impact. Existing budget limits on travel, conferences and meetings still apply.
RECOMMENDATION
I) Adopt a resolution establishing an expense reimbursement procedure for City Council
members, commissioners, and committee members. 2) Adopt a resolution amending the
training and conferences policy for unrepresented employees.
Submitted by:
#~---,
David Woo
Finance Director
Approved for submission:
~ Q. (]fu:ro-tT--c1l- Lon
David W. Knapp V ..
City Manager
Attachments:
1) Resolution establishing an expense reimbursement administrative procedure
2) Expense Reimbursement Administrative Procedure Number 1-12 (Attachment "A")
3) Resolution amending the unrepresented employees compensation program
4) Unrepresented Employees Compensation Program Policy No.3, Training and
Conferences (Attachment "A")
5) Revised Expense Reimbursement Form (Attachment "B")
19 - 2
DRAFT
RESOLUTION NO. 07-187
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ESTABLISHING AN EXPENSE REIMBURSEMENT ADMINISTRATIVE
PROCEDURE FOR CITY COUNCILMEMBERS, COMMISSIONERS, AND
COMMITTEE MEMBERS
WHEREAS, the City of Cupertino takes its stewardship over the use of its limited
public resources seriously; and
WHEREAS, public resources should only be used when there is a substantial
benefit to the City; and
WHEREAS, such benefits include:
1. Communicating with representatives of regional, state, and national
gove~ent on City adopted policy positions;
2. Attending conferences, seminars, and training designed to improve skill and
information levels;
3. Participating in regional, state and national organizations whose activities
affect the City's interests;
4. Attending City events; and
5. Attending functions of other local civic or community organizations where
there is a clear nexus between the event and the member's attendance as an
official representative of the City. Purely social events would. be excluded;
and
WHEREAS, this procedure provides guidance to such elected and appointed
officials on the use and expenditure of City resources, as well as the standards against
which those expenditures will be measured; and
WHEREAS, this procedure satisfies the requirements of California Government
Code sections 53232.2 and 53233.3; and .
WHEREAS, this procedure supplements the definition of actual and necessary
expenses for purposes of state laws relating to permissible uses of public resources.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby establishes an expense reimbursement administrative procedure for
City Council members, commissioners, and committee members by incorporating in this
resolution Attachment "A", the City of Cupertino Administrative Procedure Number I-
12.
19 - 3
Resolution No. 07-187
2
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 5th day of November 2007, by the following vote:
Vote
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
APPROVED:
City Clerk
Mayor, City of Cupertino
19 - 4
Number 1-12
Expense Reimbursement
City of Cupertino
Administrative Procedures
Attachment "A"
Effective Date: 11/5/07
New
1. PURPOSE
Describe the policy for reimbursement of actual and necessary expenses incurred by elected or
appointed officials.
II. POLICY
It is City of Cupertino policy that members of the City Council, Redevelopment Agency Boara,
and the Council's commissions and committees, shall be reimbursed with the schedules, terms
and conditions as set forth herein for the expenses authorized below, This policy is established in
accordance with California Government Code Sections 53232.2 and 53232.3.
III. AUTHORIZED EXPENSES
Actual and necessary expenses incurred by the City Council and their COII1IIllSSIOn and
committee members participating in the following activities or events constitutes authorized and
reimbursable expenses:
1. Communicating with representatives of regional, state and national government on City
adopted policy positions; .
2. Attending seminars, conferences, and training to improve skill and information levels;
3. Participating in regional, state and national organizations whose activities affect the
City's interests (such as the League of California Cities);
4. Attending City events;
5. Attending functions of other local civic or community organizations where there is a
clear nexus between the event and the member's attendance as an official representative
of the City. Purely social events would be excluded.
All other expenditures require prior approval by the City Council or City Manager. Expenses for
international travel also require prior City Council approval.
The City will not reimburse expenses including, but not limited to:
1. The personal portion of any trip;
2. Political or charitable contributions or events;
3. Family expenses, including those of a partner when accompanying Council or
commission member on City-related business, as well as child or pet-related expenses;
4. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa
treatments, etc.
5. Meals and entertainment paid on behalf of third parties outside of the City;
6. Service club meals;
7. Gifts of any kind for any purpose;
8. Alcoholic beverages;
Page 1 of 4
19 - 5
Number 1-12
Expense Reimbursement
City of Cupertino
Administrative Procedures
Attachment "A"
Effective Date: 11/5/07
New
9. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic
citations; and
10. Personal losses incurred while on City business.
IV, BUDGETARY LIMITATIONS
Reimbtirsement of expenses incurred shall not exceed budgetary limitations. Changes In
appropriations will be done through the budget process.
V. REIMBURSEMENT SCHEDULE
A. Intent
This reimbursement schedule is written with the intent that the City Councilmember,
commissioner, or committee member will make every effort to find the lowest possible cost to
the City for traveling on City business. For example, if paying for parking at the airport is less
expensive that paying for a taxi or airport shuttle, then the official should drive their car and park
at the airport; or if renting a car is lower than taking taxis at the out-of-town location, then a car
should be rented; or air reservations should be booked in advance to obtain discounted fares.
B. Local Area
The local area is defmed to be within Santa Clara and San Mateo Counties and within a 40 mile
distance from Cupertino when traveling to Alameda County.
c. Registration
The City will pay the registration fee for authorized attendance at a convention, conference,
seminar or meeting.
D. Transportation
The City will pay transportation costs on the basis of the lowest cost intent stated in paragraph A.
Eligible transportation costs include airfare (with coach fare being the maximum), van or taxi
service to and from the attendee's home and airport, destination or airport parking charges, taxi
and shuttle services at the out-of-town location, trains, tolls, or rental cars. Use of a personal
automobile for City business shall be reimbursed at the rate per mile in effect for such use,
except in no case shall it exceed air coach fare if the vehicle is being used for getting to the
destination. Government or group rates offered by a provider of transportation must be used
when available.
E. Lodging
Hotel or lodging expenses of the City official resulting from the authorized event or activitY
defmed in this policy will be reimbursed if the lodging and event occurs outside of the local area.
Not reimbursable will be lodging expenses related to person(s) who are accompanying the City
Page 2 of 4 19 " 6
Number 1-12
Expense Reimbursement
City of Cupertino
Administrative Procedures
Attachment "A"
Effective Date: 11/5/07
New
member, but who themselves are not on City business. In this instance, for example, the
difference between single and multiple occupancy rates for a room will not be reimbursed.
Where the lodging is in connection with a conference or other organized educational activity,
reimbursable lodging costs shall not exceed the. maximum group rate published by the
conference or activity sponsor, providing that lodging at the group rate is available at the time of.
booking. If the group rate at the conference hotel is not available, then the non-conference
lodging policy described in the next paragraph should be followed to fmd another ~omparable
hotel.
Where lodging is necessary for an activity that is not related to a conference or other organized
educational activity, reimbursement shall be limited to the actual cost of the room at a group or
government rate. In the event that a group or government rate is not available, lodging rates that
do not exceed the median price for lodging for that area and time period listed on travel web sites
like www,hotels.com, www.expedia.com or an equivalent service shall be reimbursable.
F. Meals
I. With No Conference
Payments toward or reimbursement of meals related to authorized activities or events shall
be at the Intemal Revenue Service per diem rate for meals and incidental expenses for a
given location, as stated by IRS publications 463 and 1542 and by the U.S. General Services
Administration. The per diem shall be split among meals as reasonably desired and reduced
accordingly for less than full travel days. If per diem is claimed, no receipts are necessary:
Alternatively, the actual cost of a meal can be claimed, within a standard of reasonableness,
but receipts must be kept and submitted for the expense incurred.
2: As Part of a Conference
When City officials are attending a conference or other organized educational activity, they
shall be reimbursed for meals not provided by the activity, on a per diem or actual cost
basis. The per diem and actual cost rate shall follow the rules described in the meals with DO
conference paragraph.
G. Other Expenses
Payments toward or reimbursement of other expenses related to authorized activities or events
shall be limited to the actual costs consistent with the application of reasonable standards.
Receipts must be kept and submitted for all expenses.
Page 3 of 4
19 -7
Number 1-12
Expense Reimbursement
City of Cupertino
Administrative Procedures
Attachment "A"
Effective Date: 11/5/07
New
VI. EXPENSE REPORT REQUIREMENTS
All expense reimbursement requests must be approved by the City Manager or Department
Head, on forms determined by the Finance Department, within 30 calendar days of an expense
incurred, accompanied by a business purpose for all expenditures and a receipt for each non-per
diem item. The report will be a public record subject to disclosure under the Public Records Act.
VIT. REPORTS TO CITY COUNCIL OR COMMISSIONS
At the next regular City Council or commission meeting, each councilmember or commissioner
shall briefly report on publicly noticed meetings attended at City expense. If multiple members
attended the meeting, a joint report may be made.
VIII. POLICY VIOLATIONS
Violations of this policy including falsifying expense reports may. result in any or all of the.
following: (1) loss of reimbursement privileges, (2) demand for restitution to the City,- (3) civil
penalties of up to $1,000 per day and three times the value of the resources used, and 4)
prosecution for misuse of public resources.
IX. RESPONSIBILITY
The Finance Department shall administer this policy..
Approved:
c!~{l ,~ LFh.
David W. Knapp V'"' .
City Manager
Page 4 of4
19 - 8
RESOLUTION NO. -07-188
DRAFT
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING RESOLUTION NO. 07-176, THE UNREPRESENTED
EMPLOYEES' COMPENSATION PROGRAM REGARDING TRAINING AND
CONFERENCES POLICY
WHEREAS, the City of Cupertino takes its stewardship over the use of its limited
public resources seriously; and
WHEREAS, public resources should only be used when there is a substantial
benefit to the City; and
WHEREAS, such benefits include attending conferences, seminars, and training
designed to improve skill and information levels or to implement a City approved
strategy for attracting and retaining businesses in the City; and
WHEREAS, the Unrepresented Employees' Compensation Program, Policy No.
3, Training and Conferences, provides guidance to City employees on the use and
expenditure of City resources, as well as the standards against which those expenditures
will be measured.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby amends the Unrepresented Employees Compensation Program, Policy
No.3, Training and Conferences, as shown in Attachment "A" which is incorporated in
this resolution by this reference.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 5th day of November 2007, by the following vote:
Vote
Members of the City Council
AYES:
NOES:
ABSENT:
ABSTAIN :
ATTEST:
APPROVED: .
City Clerk
Mayor, City of Cupertino
19 - 9
Attaclunent "A"
Amendments shown in striketlH'oughs and italics
City of Cupertino
UNREPRESENTED EMPLOYEES' COMPENSATION PROGRAM
Policy No.3
TRAINING AND CONFERENCES
1. POLICY
A. Management Personnel
It is City of Cupertino policy that eligible persons, other than the City Manager, under this
Compensation Program shall be reimbursed in accordance with the schedules, terms and
conditions as set forth herein for attendance at conferences, meetings and training sessions as
defined below for each. It is the intent of this policy to encourage the continuing education
. and awareness of said persons in the technical improvements and innovations in their fields
of endeavor as they apply to the City or to implement a City approved strategy for attracting
and retaining businesses in the City. One means of implementing this encouragement is
through a formal reimbursement schedule for authorized attendance at such conferences,
meetings and training sessions.
B. Non-Management Personnel
When authorized by a Department Head their supervisor, a non-management person may
attend a conference, meeting or training session subject to the stated terms and conditions
included herein for each with payment toward or reimbursement of certain expenses incurred
being limited to authorized actual costs thereof.
. II DEFINITIONS
A. Budgetary Limitations
Fooding eapability for payment toward or reimbursement of expenses inet:1ffed for attendanoe
at oonferences, meetings and training sessions shall be limited to the amount appropriat-ed as
a line item far eaoo applioo-ble amount.
BA. Conferences
A conference is an annual meeting of a work related organization the membership of which
may be held in the name of the City of the individual.
GR. Local Area
A local area is that vlithin an npprmcimate 100 mile radius or two hours drive of the City.
The local area is defined to be within Santa Clara and San Mateo Counties and within a 40
mile distance from Cupertino when traveling to Alameda County.
4
19-10
Attachment "A"
Ameridments shown in strikethroughs and italics
I;)C. Meetings
A "meeting" shall mean a convention, conference, .seminar, workshop, meal, or like assembly
having to do with municipal government operations. An employee serving on a panel for
interviews of job applicants shall not come under this definition.
ED. Training Session
A training session is any type of seminar or workshop the attendance at which is for the
purpose of obtaining information of a work related nature to benefit the City's operations or
to enhance the attendee's capabilities in the discharge of assigned duties and responsibilities.
III REIMBURSEMENT SCHEDULE
A, Intent
This reimbursement schedule is written with the intent that the employee will make every
effort to find the lowest possible cost to the City for traveling on City business. For example,
if paying for parking at the airport is less expensive that paying for a taxi or airport shuttle,
then the employee should drive their car and park at the airport; or if renting a car is lower
than taking taxis at the out-of-town location, then a car should be rented; or air reservations
should be booked in advance to obtain discountedfares.
A B. Registration
Registration fees for authorized attendance at a meeting or training session will be paid by the
City.
Be. Transportation
\Vhen an e)(penditure is authori~d or is eligible for reimbursement the City' will pay
tr8:flsportation costs from the attendee's home to the destination and return on the basis of the
costs for the nearest route by air at the air voaeb. fare. Transportation costs also may include
limousine or trod serviee to and from the attendee's home and the airport or for airport or
destination parking charges for personal automobiles so parked when such is used in lieu of
traT,<e1 by air. Use of a personal automobile for City business shall be r~iml:JUrsed at a rate per
mile then in effect for such use except in HO ease shall it exceed air coach fare.
The City will pay transportation costs on the basis of the lowest cost intent stated in
paragraph A, Eligible transportation costs include airfare (with coach fare being the
maximum), van or .taxi service to and frOm the attendee's home and airport, destination or
airport parking charges, taxi and shuttle services at the out-of-town location, trains, tolls, .or
rental cars, Use of a personal automobile for City business shall be reimbursed at the rate
per mile in effect for such use, except in no case shall it exceed air coach fare if the vehicle is
being used for getting to the destinatioYl;. Government or group rates offered by a provider of
transportation must be used when available.
5
19-11
Attachment "A"
Amendments shown in skiketlHOI:lgRS and italics
Requests for car rentals mUGt have prior approval by the City Manager for reimbursemeflt.
Reimbursement for use of a personal automobile on City business within a local area will not
be made so as to supplement that already being paid to those persons receiving a monthly
mileage allowance.
GD. Hetel-Lodging
Payments toward or reimbursement of hotel or lodging expenses is limited to the actual cost
of the room. Saeh payments or reimburnements shall not be made f-or hotel or lodging
e}cpense when ineurred within the loeal area. Exceptions to this requirement shall be for
attendance at the .^..nnual League of California Cities Conference and f-or those nights '.vhen
attendance at other eonf-erenees, meetings and training sessions 'official funetions v:ould
preclude the return to the City by the attendee within two hours after the end of the normal
. working day.
Hotel or lodging expenses of the employee resulting from the authorized event or activity
defined in this policy will be reimbursed if the lodging and event occurs outside of the local
area. Not reimbursable will be lodging expenSes related to person(s) who are accompanying
the City member, but who themselves are not on City business. In this instance, for example,
the difference between single and multiple occupancy rates for a room will not be
reimbursed.
Where the lodging is in connection with a conference or other organized educational activity,
reimbursable lodging costs shall not exceed the maximum group rate published by the
conference or activity sponsor, providing that lodging at the group rate is available at the
time of booking. If the group rate at the conference hotel is not available, then the non-
conference lodging policy described in the next paragraph should be followed to find another
comparable hotel.
Where lodging is necessary for an activity that is not related to a conference or other
organized educational activity, reimbursement shall be limited to the actual cost of the room
at a group or government rate. In the event that a group or government rate .is not available,
lodging rates that do not exceed the median price for lodging for that area and time period
listed on travel websites like www.hotels.com. www,expedia.com or an equivalent service
shall be reimbursable.
E; Meals
1. With No Conference
Payments toward or reimbursement of meals related to authorized activities or events
shall be at the Internal Revenue Service per diem rate for meals and incidental expenses
for a given location, as stated by IRS publications 463 and 1542 and by the u.s. General
Services Administration. The per diem shall be split among meals as reasonably desired
6
19-12
Attachment "A"
Amendments shown in strikethro\:lghs and italics
and reduced accordingly for less than full travel days, If per diem is claimed, no receipts
are necessary. Alternatively, the actual cost of a meal can be claimed, within a standard
of reasonableness, but receipts must be kept and submittedfor the expense incurred
2. As Part of a Conference
When City personnel are attending a conference or other organized educational activity,
they shall be reimbursed for meals not provided by the activity, on a per diem or actual
cost basis, The per diem and actual cost rate shall follow the rules described in the meals
with no conference paragraph.
gF. Other Expenses
Payments toward or reimbursement of expenses at such functions shall be limited to the
actual costs consistent with the application of reasonable standards.
Costs of speeial luncheon or dinner meetings or other programs on the agenda and not
oovered by registration f-ees may be paid or reimbursed in addition to this daily allo'l:ance
when approved by the City Manager.
Other reasonable expenses related to business purposes shall be paid consistent with this
policy.
No payments shall be made unless, where available. receipts are kept and submitted for all
expenses incurred. When receipts are not available, qualifying expenditures shall be
reimbursed upon signing of an affidavit of expenditure.
No payment shall be made for any expenses incurred which are of a personal nature or not
within a standard of reasonableness for the situation as may be defined by the Finance
Department City Manager.
G. Non-Reimbursable EXTJenses
The City will not reimburse expenses including, but not limited to:
1. The personal portion of any trip;
2. Political or charitable contributions or events;
3. Family expenses, including those of a partner when accompanying the employee on City-
related business, as well as child or p~t-related expenses;
4. Entertainment expenses, including theatre, shows, movies, sporting events, golf, spa
treatments, etc,
5, Gifts of any kind for any purpose;
6. Service club meals;
7
19-13
Attachment "A"
Amendments shown in strikethroughs and italics
7. Alcoholic beverages;
8. Non-mileage personal automobile expenses including repairs, insurance, gasoline, traffic
citations; and
9. Personal losses incurred while on City business.
IV A ITENDANCE AUTHORIZATION
A. Budgetary Limitations
Notwithstanding any attendance authorization contained herein, reimbursement for expenses
incurred or expenditures made relative to conferences, meeting or training sessions shall not
excee4 the budgetary limitations.
B. Conference Attendance
Attendance at conferences or seminars by employees must be approved by their supervisor
Depar.ment Head or the City Manager.
C. Meetings
Any employee, management or non-management, may attend a meeting when authorized by
their supervisor Department Head.
D. Training Sessions
Any employee, management or non-management, may attend a training seSSlOn when
.authorized by their supervisor Depar.ment Head. .
V. FUNDING
A. Appropriation Policy
It shall be the policy of the City to appropriate funds subject to availability of resources.
B. Training Sessions
Payments toward or reimbursement of expenses incurred in attendance at training sessions,
will be appropriated annually through the budget process.
There also '.vill be an appropriation to the Department of Parks lll1d Reereation each year to be
wed as payment toward or reimbursement of expenses incurred for its in service trammg
program.
8
19-14
Attachment "A"
Amendments shown in strikethrougfls and italics
Excluded from this funding eapabiIity is that am.ount to be determined eaeh year and
appropriated to the Personnel Division f-or eosts incurred in training pl'-ograms of a general
nature and applicable to all employoes.
VI. EXPENSE REPORT REQUIREMENTS
All expense reimbursement requests must be approved by their supervisor, on forms
determined by the Finance Department, within 30 calendar days of an expense incurred,
accompanied by a business purpose for all expenditures and a receipt for each non- per diem
item,
Revised 7/83, 7/85, 7/87, 7/88, 7/91, 7/92, 11/07
9
19-15
Vendor No,
Attachment liB"
CITY OF CUPERTINO
REIMBURSEMENT OF EXPENSES
TO: FINANCE DEPARTMENT
I NAME
DEPARTMENT
CLAIM PERIOD
SCHEDULE A
Record of Expenses Claimed
Meals Other Daily
Date Explanation B L D * Hotel Amount Total
$ $ $ $ $ $
. .
* CODE for Other Expenses
A - Taxi, Bus, Car Fare Total
B - Telephone & Telegraph
C - Parking Fees
D - Train/Plane Fare (attach receipts)
E - Registration Fees (attach receipts)
F - Guest Expenses (name & title)
G - Miscellaneous (attached receipts)
H - Per Diem
TOTAL EXPENSES CLAIMED $
TOTAL MILEAGE EXPENSE CLAIMED $
LESS ADVANCE PAID $
TOTAL REIMBURSEMENT $
ACCOUNT DISTRIBUTION
I certify that this claim is a true record of
expenses incurred on official business of
the City of Cupertino during the above period.
All expenses reported on this form comply
with the City's expense reimbursement
policies and procedures.
Account Number Amount
$
$
$
$
$
Date Submitted
Employee Signature
Approval Recommended:
Supervisor, Department Head, or City Manager
FOR COMPLETION BY FINANCE DEPARTMENT
Receipt Number
Approval Date
Finance Dept Signature
19-16
. SCHEDULE B
Record of Travel in Privately Owned Automobile
I Travel Area Number
)ate From To of Miles Purpose
Total Mileaoe from paoe 1 of supplement
Total Mileaoe from oaae 2 of suoolement
Total
@
$
19-17