HomeMy WebLinkAboutRESOLUTION 2024-085 N.C.S. 07/15/2024 Docusign Envelope ID:55F7232E-69BE-4E6C-831C-F8E7C472412F
Resolution No. 2024-085 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA ADOPTING THE CITY
OF PETALUMA EXPENSE REIMBURSEMENT POLICY FOR CITY COUNCILMEMBERS AND
REPEALING AND REPLACING RESOLUTION NO. 2003-045 N.C.S.
WHEREAS, the City of Petaluma takes seriously its stewardship over the use of its limited public resources
by its officials; and
WHEREAS, public resources should be used by such officials when there is a benefit to the City; and
WHEREAS, such benefits include,but are not limited to:
1. Communicating with representatives of regional,state,and national government on City-adopted policy
positions and/or other matters of community concern; and
2. Attending educational seminars designed to improve officials' skill and information levels; and
3. Participating in regional, state and national organizations whose activities affect the City's interests;
and
4. Promoting public service and morale by recognizing such service on the part of City employees,
members of the community, and/or other individuals; and
5. Attending events that affect the City's interests; and
6. Promoting or implementing a strategy for attracting or retaining businesses and other development to
the City; and
7. The performance of such other official duties that affect the City's interests; and
WHEREAS, Government Code Section 36514.5 allows for the reimbursement to Mayor and
Councilmembers for actual and necessary expenses incurred in the performance of their official duties; and
WHEREAS, on March 3, 2003, City Council adopted Resolution 2003-045 N.C.S, attachment 2 of the
concurrent Staff Report which set forth the policy for the Mayor and Councilmembers to be reimbursed for their
expenses in performing official City duties; and
WHEREAS, in 2005 the State passed Assembly Bill 1234 which requires a local agency that provides
reimbursement for expenses to members of its legislative body to adopt a written policy on the duties for which
legislative body members may receive reimbursement for performing their official duties; and
WHEREAS, the attached City of Petaluma Expense Reimbursement Policy for City Councilmembers
("Policy") provides guidance to City officials on the use and expenditure of City resources, as well as the
standards against which those expenditures will be measured; and
WHEREAS, this Policy would satisfy the requirements of AB 1234, specifically California Government
Code sections 53232.2 and 53233.3 in the event such requirements could be constitutionally applied to charter
cities; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality
Act ("CEQA") in accordance with CEQA Guidelines Section 15378(b), in that ratifying the attached
reimbursement Policy does not meet CEQA's definition of a "project," because the action does not have the
Resolution No. 2024-085 N.C.S. Page 1
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potential for resulting either a direct physical change in the environment or a reasonably foreseeable indirect
physical change in the environment,and because this is a fiscal action and personnel-related action that constitutes
organizational or administrative activities of governments that will not result in direct or indirect physical changes
in the environment.
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Petaluma as follows:
1. The above recitals are hereby declared to be true and correct and are incorporated into the resolution as
findings of the Petaluma City Council.
2. The proposed action is exempt from the requirements of the California Environmental Quality Act
("CEQA") in accordance with CEQA Guidelines Section 15378(b), in that ratifying the attached
reimbursement Policy does not meet CEQA's definition of a"project,"because the action does not have
the potential for resulting either a direct physical change in the environment or a reasonably foreseeable
indirect physical change in the environment, and because this is a fiscal action and personnel-related
action that constitutes organizational or administrative activities of governments that will not result in
direct or indirect physical changes in the environment.
3. The Expense Reimbursement Policy, attached hereto as Exhibit A, is adopted.
4. Resolution 2003-045 N.C.S. and the policy attached, "Mayor and Council Members Expense
Reimbursement Policy" is hereby repealed.
5. This Resolution shall become effective immediately.
6. Directs staff to create an ethics training to satisfy Assembly Bill 1234.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 151 day of July 2024, DocusignedfWnl:
by the following vote:
ity ttorney
AYES: McDonnell,Barnacle,Cader Thompson,Healy,Nau,Pocekay,Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
DocuSigned by: DocuSigned by:
ATTEST: BF L 9AQfr24�
City Clerk Mayor
Resolution No. 2024-085 N.C.S. Page 2
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EXHIBIT A
City of Petaluma Expense Reimbursement Policy for City Councilmembers
EXHIBIT B
Resolution No. 2024-085 N.C.S. Page 3
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City of Petaluma Expense Reimbursement Form for City Councilmembers
Resolution No. 2024-085 N.C.S. Page 4
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�,y r
City of Petaluma
Expense Reimbursement and AB 1234 Policy for City Councilmembers
1. Purpose and Scope of Expense Reimbursement Policy.
U.The purpose of this Expense Reimbursement Policy ("Policy") is to establish clear
guidelines for reimbursing the Mayor and City Councilmembers (hereinafter referred
to jointly as the Council or separately as Councilmember) for their actual and
necessary expenses incurred in the performance of official City duties and comply
with Cal. Gov. Code § 53232 through § 53232.4.
1.2.This Policy applies to each member of the City Council. Additionally, this Policy
applies to each member of a"Legislative Body" as defined by Government Code
Section 54952, only to the extent that prior approval for a particular expense
reimbursement has been separately approved by the City Council.
1.3. City Manager, City Attorney, and Finance Director referred to herein are the City
Manager, City Attorney, and Finance Director for the City of Petaluma or their
designee(s).
2. Statement of General Rule: The Council is entitled to reimbursement for any"Actual
and Necessary Expenses", as defined in section 4 of this Policy, incurred in the
performance of"Official Duties", as defined in Section 3 of this Policy, of the
Councilmember,provided that the amount of the expenses does not exceed the
reasonable reimbursement rates set forth in this Policy, and provided that the amount of
the expenses does not exceed the amount budgeted for such expenses.
2.1. Elements of the General Rule: Each Section of the Policy is described in the
following sections of this Policy:
2.1.1. Section 3: "Official Duties"
2.1.2. Section 4: "Actual and Necessary Expenses"
2.1.3. Section 5: "Reasonable Reimbursement Rates"
2.1.4. Section 6: "Documentation of Actual Costs"
2.1.5. Section 7: "Policy Violations"
2.1.6. Section 8: "Ethics Training"
2.2. Procedures:
2.2.1. Each Councilmember is encouraged to contact the City Manager, the City
Attorney, or the Finance Director if there are any questions regarding the
implementation of this Policy. In particular, it is important to know whether a
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particular cost is reimbursable before the cost is incurred to best safeguard
City monies.
2.2.2. The City Council shall as part of the annual budget approve amounts available
for reimbursements in accordance with this Policy.
2.2.3. The Finance Director, in coordination with the City Manager and the City
Attorney,will develop standard Expense Report Forms ("Form(s)") and may
develop guidelines to implement this Policy. Each Councilmember will be
notified regarding any changes to the Form and guidelines.
2.2.4. Councilmembers will submit reimbursement requests to the Finance Director
on Expense Report Forms, along with the documentation described in Section
6 (Documentation of Actual Costs).
(a) If the Finance Director determines that the request is made in
accordance with this Policy, then reimbursement will be made
accordingly.
(b) If the Finance Director determines that all or some portion of the
request does not comply with this Policy, the Finance Director shall
notify the Councilmember with the basis for the determination, and
1. If the Councilmember is able to provide additional information
or documentation such that the Finance Director determines that
the request is made in accordance with this Policy, then
reimbursement will be made accordingly.
2. If the Finance Director does not determine that the request is
made in accordance with this Policy, per Subsection 2.2.4.b.1.,
then the Councilmember may request a meeting with the City
Manager, the City Attorney, and the Finance Director to determine
if the request has been made in accordance with this policy.
3. If a meeting requested under Subsection 2.2.4.b.2 does not result
in a determination satisfactory to the Councilmember, the
Councilmember may submit the request to the City Council to
determine whether the reimbursement will be made to the
Councilmember at the next scheduled regular City Council
meeting.
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2.2.5. If a Councilmember or City Manager has any proposed change to this Policy,
the proposed change may be submitted to the City Council for their
consideration at a regularly scheduled City Council meeting.
3. Official Duties: A Councilmember is entitled to reimbursements only for costs incurred in the
performance of"Official Duties,". Official Duties include,but are not limited to, the following:
3.1.Attending educational seminars designed to improve Councilmembers' skill and
information levels, like specific subject matter trainings.
3.3. Communicating with representatives of local, regional, state, and national
government and their various agencies and entities on policies that may impact the City
of Petaluma.
3.4. Communicating with representatives of business or community interests at the local,
regional, state, and national level on policies which may impact the City of Petaluma.
3.5. Participating in local, regional, state, and national organizations whose activities
affect the City's interests. Such organizations include,but are not limited to, California
League of Cities, California Redevelopment Association, or Sierra Club.
3.6.Attending events for which the City is a sponsor or participant.
3.7.Attending a meeting designed to implement a City-approved strategy for attracting or
retaining business to the City.
4. Actual and Necessary Expenses: A Councilmember is entitled to reimbursements only for
"actual and necessary" expenses incurred in the performance of official duties, including the
following:
4.1. General Rule: "Actual and necessary" expenses are those expenses for which there
is a"practical need"based on costs normally incurred in prevailing business practices to
conduct the "Official Duties."Actual and necessary expenses include, but are not limited
to those costs listed in Section 5 of this Policy.
4.1.1. Actual and necessary expenses may include miscellaneous expenses not
specifically identified in Section 5 of this Policy; provided, however, a
Councilmember requesting reimbursement for miscellaneous expenses not
specifically identified in Section 5 shall have the burden of establishing the
"practical need" for incurring the expense in order to conduct"Official Duties."
An example of an"actual and necessary"miscellaneous expense could be
business cards.
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4.2 "Actual and necessary" expenses shall not include any costs related to the personal
portion of any City-business trip, entertainment or recreation(including but not limited to
theater, movies, sporting events, gym, or massage), alcohol, tobacco, gifts to any third-
parry,political campaign activities, charitable contributions.
4.3.All other expenditures that are not deemed"Actual and necessary"require prior
approval by the City Council and are subject to reasonable reimbursement rates as
described in section 5.4.
5. Reasonable Reimbursement Rates: In determining whether a Councilmember's Actual and
Necessary Expenses are "reasonable,"the Councilmember may rely on this Policy or rates
established by the Internal Revenue Service Publication 463.1
5.1. Transportation:
5.1.1. General.
(a) The Councilmember shall make reasonable efforts to ensure that the
most economical (cost-effective and time-efficient) mode and class of
transportation is used, considering the possibility of carpooling and ride
sharing,particularly for car rentals or taxis, compared to other forms of
transit.
(b) The Councilmember shall make reasonable efforts to inquire into the
availability of government and group rates (such as those available
through the League of California Cities Enhanced Local Government
Airfare Program, the California State Association of Counties, and the
State of California). The Finance Director and/or City Manager can assist
Councilmembers in finding suitable transportation. The Councilmember
shall be entitled to reimbursement for expenses to the extent equal to or
less than any reasonably available government or group rate. In any event,
a Councilmember shall not be entitled to reimbursement for any expenses
to the extent they exceed the cost generally available to the public.
5.1.2. Personal Vehicle. Each Councilmember shall maximize the use of personal
automobiles for travel to official duties within a 50-mile radius of Petaluma. The
Councilmember shall be entitled to reimbursement in an amount equal to the
lesser of. (1) the Internal Revenue Service rate for milage reimbursement based
on the number of round-trip miles to and from the official duties, less 100 miles;
or(2) the amount of roundtrip airfare pursuant to Section 5.1.3.
1 hitps://www.irs.,gov/forms-pubs/about-publication-463 Link to IRS Publication 463.
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(a) Use of a privately owned vehicle on City business requires the driver
to possess a valid California driver's license and to carry automobile
insurance consistent with the City's requirements. Any damage to the
vehicle or service repairs are of a personal nature, and are not
reimbursable by the City, and the City shall assume no liability.
5.1.3. Airfare. In the event that airfare is determined to be the most economical
mode of transportation for official duties, the Councilmember shall make
reasonable efforts to obtain the most economical airfares. When traveling by air,
reimbursement shall be authorized for reasonable and actual costs and/or
reasonable gratuities for baggage handling.
5.1.4. Car Rental. In the event that car rental is determined to be the most
economical mode of transportation for official duties, the Councilmember shall
make reasonable efforts to obtain the best price for a reasonable rental car. When
using a rental car, reimbursement shall be authorized for reasonable actual costs
of gasoline,parking, and tolls.
5.1.5. Taxis/Shuttles/Transit. In the event that transit(taxis, shuttles, or other
transit) is determined to be the most economical mode of transportation for
official duties, the Councilmember shall make reasonable efforts to obtain the
most economical rates for the transit. When using taxis or shuttles, reimbursement
shall be authorized for reasonable actual costs of gratuities, not to exceed 15
percent per fare.
5.2. Lodjing:
5.2.1. General.
(a) The Councilmember shall make reasonable efforts to ensure that the
most economical (cost-effective and time-efficient based on location)
mode and class of lodging is used. The City Manager's Office may assist
Councilmembers in finding suitable accommodations.
(b) The Councilmember shall make reasonable efforts to inquire into the
availability of government and group rates (such as those available
through the League of California Cities). The Councilmember shall be
entitled to reimbursement for expenses to the extent equal to or less
than any reasonably available government or group rate. In any extent,
a Councilmember shall not be entitled to reimbursement for any
expenses to the extent they exceed the cost generally available to the
public.
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(c) Councilmembers must cancel any reservation that will not used. Any
extension of time for personal use is not covered and must be paid for
directly by the Councilmember.
(d) An elected official may stay with a friend of relative while attending
official business, however the City will not reimburse for any payment
to the friend or relative for lodging, meals or transportation.
5.2.2. The actual and reasonable costs of lodging for out of town"official duty"
events are reimbursable from the night preceding the beginning of the event,
through the night preceding the close of the event. The Councilmember shall be
entitled to reimbursement for meals, pursuant to Section 5.3, from the beginning
of travel through the end of travel.
5.3 Meals: Meals and associated gratuities will be reimbursed based on actual costs, in an
amount not to exceed the "U.S. General Services Administration Meals and Incidentals
Breakdown at the location of the official duty.2:
5.4. Miscellaneous Expenses: To the extent that actual costs incurred in the performance of
official duties are defined as "Actual and Necessary"Expenses, pursuant to Section 4),but the
reasonable costs are not otherwise defined in this section 5, the Councilmember shall be entitled
to reimbursement for expenses to the extent equal to or less than any reasonably available
government or group rate. In any event, a Councilmember shall not be entitled to reimbursement
for any expenses to the extent they exceed the cost generally available to the public.
5.4.1 Spouse and Guests. Spouses and guests are allowed to accompany the elected
official on City travel and at conferences, seminars and meetings when using public or private
transportation. However, the City will only reimburse the elected official pursuant to this policy.
6. Documentation of Actual Costs: Each Councilmember shall submit requests for
reimbursements to the Finance Director, using an"Expense Report Form" established by the
Finance Director, to identify information sufficient to document compliance with the
requirements of this Policy.
6.1. Councilmembers shall promptly submit reimbursement requests to the Finance
Director.
6.2. At a minimum, the documentation of actual costs shall include an identification of
the "official duty,"the type of expense based on the categories of reasonable
reimbursement rates identified in Section 5, the actual amount of expenses, and the date
each expense was incurred, along with a certification by the Councilmember that the
2 https://www.gsa.gov/travel/plan-book/per-diem-rates?gsaredirect=perdiem
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expenses set forth on the Expense Report Form represent actual and necessary expenses
incurred in the performance of the Councilmember's official duties.3
6.3.Adequate documentation of the actual costs shall be submitted with the Expense
Report Form. Receipts are not required for meals under $25. Adequate documentation
may include receipts from the vendor, credit card receipts, cancelled checks, or any other
documentation in a form satisfactory to the Finance Director to reasonably document the
expense based on particular circumstances. If an original receipt has been lost, the
councilmember may submit a declaration seeking approval of the affected expense.
6.4. If a Councilmember is reimbursed for attending a meeting of another local entity,
conference or other education event, the Councilmember is required to briefly report on
that conference, meeting or event at the next regular City Council meeting to inform the
Council about the event.4
7. Policy Violations
7.1 General. Violations of this Policy including falsifying expense reports may result in
any or all of the following:
(a) loss of reimbursement privileges,
(b) demand for restitution to the City,
(c) any other applicable state and federal penalties, including criminal
prosecution.'
7.2 Policy Violation Hearing. The City Council shall consider 7.1(1) or 7.1(2) above
only at a publicly noticed Council meeting at which a hearing shall be held to determine
whether or not a Councilmember has violated the Policy and what the appropriate penalty
shall be.
(a) The determination as to whether or not to hold such a hearing may be made
only after a vote of a majority of the Councilmembers present at any meeting
during which the matter is considered.
(b) The hearing shall not be a full adversarial evidentiary hearing, and there shall
be no direct or cross examination of witnesses except by the Council.
3 Cal.Gov.Code§ 53232.3
4 Cal.Gov.Code§ 53232.3(d)
5 Cal.Gov.Code§ 53232.4
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(c) The Councilmember who is being accused of violating the Policy shall be
entitled to present any evidence to the Council as to the validity and propriety of
expenditures for which reimbursement was sought. The Councilmember being
accused of violating the policy shall not participate in either the decision to hold
the hearing or the decision on the hearing.
8. Ethics Training:
8.1. Each Councilmember shall receive at least two hours of training in general ethics
principles and ethics laws relevant to his or her public service every two years.6
8.1.1. "Ethics Laws" shall include:
(a) Laws relating to personal financial gain by public servants, including,
but not limited to, laws prohibiting bribery and conflict-of-interest laws.
(b) Laws relating to claiming prerequisites of office, including, but not
limited to, gift and travel restrictions,prohibitions against the use of public
resources for personal or political purposes, prohibitions against gifts of
public funds,mass mailing restrictions, and prohibitions against acceptance
of free or discounted transportation by transportation companies.
(c) Government transparency laws, including, but not limited to, financial
interest disclosure requirements and open government laws.
(d) Laws relating to fair processes, including, but not limited to, common
law bias prohibitions, due process requirements, incompatible offices,
competitive bidding requirements for public contracts, and disqualification
from participating in decisions affecting family members.
8.2. Maintaining Records. After completing the Ethics law training, the Councilmember
shall provide documentation of the ethics training to the City Clerk, indicating both of the
following:
(a) The dates that local officials satisfied the requirements of this article.
(b) The entity that provided the training.?
8.2.1. The City Clerk shall maintain these records for at least five years after local
officials receive the training.$ These records are public records subject to disclosure
under the California Public Records Act.
6 Cal.Gov.Code§ 53235.
Cal.Gov.Code§ 53235.2.
8 Cal.Gov.Code§ 53235.2.
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CITY OF PETALUMA
CITY COUNCIL EXPENSE REPORT-CALENDAR YEAR 2024
PROVIDE RECEIPTS FOR ALL REIMBURSABLE EXPENSES EXCEPT MILEAGE
COMPLETE ALL HIGHLIGHTED FIELDS
Date: 7/8/2024
Name: Dept: City Council
Event/Course Attended:
Location of Event/Course: Dates Attended:
Fund.Cost Center: Project:
Paid with
Travel Dates TOTALS CalCard?
Hotel
Meals
Airfare
Other Transportation
Parking
Conference Registration
Mileage Reimbursement-Use mileage log on page 2 to record miles.
TOTAL TRAVEL EXPENSES
TOTAL TRAVEL EXPENSES PAID BY COUNCIL MEMBER
ENTER CASH ADVANCE AMOUNT HERE-->LESS CASH ADVANCED
EXPENSE REIMBURSEMENT TO COUNCIL MEMBER
EXCESS ADVANCE DUE CITY FROM COUNCIL MEMBER
(Pay by check to City of Petaluma)
I certify that the above expenses represent actual and necessary expenses for City business.
Submitted By: Date:
Approved By: Date:
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FINANCE DEPARTMENT USE
Fund.Cost Center Object Project Amount
0 56530 0 Advance Cleared:
0 56550 0 Entered:
0
1
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MILEAGE REIMBURSEMENT LOG
Name: 0 Department: City Council
ONLY CLAIM MILES DRIVEN ABOVE AND BEYOND YOUR REGULAR DAILY ROUND-TRIP COMMUTE
Travel
Date From To Purpose Miles Reimbursement
2024 IRS Reimbursement Rate $ 0.67 per mile
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Additional Information on Travel Expenditures:
2