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RES-11485 EXPENSE AND REIMBURSEMENT POLICY FOR CITY COUNCIL MEMBERS - AUG 22, 2023RESOLUTION NO. 11485 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE ADOPTING AN EXPENSE AND REIMBURSEMENT POLICY FOR CITY COUNCIL MEMBERS FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES WHEREAS, in November 2011, the City Council adopted an ordinance eliminating reimbursement for the Mayor and City Council members for actual and necessary expenses incurred in the performance of official duties, or to otherwise have such actual and necessary expenses paid for by the City, which applied prospectively to future Mayors and City Council members; and WHEREAS, since the 2011 ordinance eliminated said reimbursements, it has been the experience of the City Council that the inability to be reimbursed for their actual and necessary expenses to conduct official business has undermined the Council members' ability to advance the legislative and financial interests of the City and has been detrimental to the City of Orange; and WHEREAS, in an effort to enhance the stature, presence, and influence of the City, necessitated by issues and events having local, state and federal significance, the City Council adopted Ordinance No. 09-21, pursuant to California Government Code Section 36514.5, which provides the authority for the City Council to be reimbursed for actual and necessary expenses incurred in the performance of their official duties; and WHEREAS, California Government Code Section 53232.2 requires the City Council to adopt a written policy for the reimbursement of actual and necessary expenses incurred in the performance of official duties; and WHEREAS, California Government Code Section 53232.3 requires the City Council members to provide documentation and an expense report,and report out on the meetings attended at the expense of the local agency, following reimbursement for expenses incurred on behalf of the local agency; and WHEREAS, this policy satisfies the requirements of California Government Code Sections 53232.2 and 53232.3, for purposes of state laws relating to the permissible use of public resources; and WHEREAS,the City Council recognizes and affirms that any member of the City Council may elect to waive any or all payment for expenses incurred in the performance of their official duties that may be reimbursed under this policy, as authorized by the ordinance. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Orange as follows: SECTION I: That the "CITY COUNCIL REIMBURSEMENT POLICY FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF OFFICIAL DUTIES," attached hereto as Exhibit"A," is hereby adopted. ADOPTED this 22nd day of August 2023. R. Slater, Mayor, City of Orange ATTEST: fAxAbc, Pamela Coleman, City Clerk, City of Orange Attachment: Exhibit A STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ORANGE I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the 22nd day of August 2023,by the following vote: AYES:COUNCILMEMBERS: Barrios, Dumitru, Tavoularis, Bilodeau, Gutierrez, Gyllenhammer, and Slater NOES:COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None C- 144412-1A JAae-e--alaC,i/\ Pamela Coleman, City Clerk, City of Orange Resolution No. 11485 2 EXHIBIT "A" CITY COUNCIL REIMBURSEMENT POLICY FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF OFFICIAL DUTIES PURPOSE This policy governs the reimbursement of actual and necessary expenses incurred in the performance of a City Council member(s) official duties. AUTHORIZED ACTIVITIES Authorized activities (and expenses) shall be directly related to an ultimate benefit to the City, including but not limited to Council member education and training;attendance as a representative of the City at events of other governmental functions. Expenses incurred in connection with the following types of activities generally are authorized reimbursable expenses, as long as the other requirements of this policy are met: 1. Meeting with representatives of local, regional, state and national government on issues directly affecting the City; 2. Attending educational seminars designed to improve the skill and information level of City Council members, in their role as a City Council member; 3. Attending training required by law, including ethics training (AB 1234) and sexual harassment training (AB 1661); 4. Attending City events, in their official capacity as a City Council member; and 5. Attending events implementing a City strategy for attracting or retaining businesses to the City. All other activities for which expense payment or reimbursement is sought require prior approval by a majority vote of the City Council. The City Manager and the Mayor shall determine whether something constitutes an"authorized activity" in the event of a question as to the applicability of this part. Any authorized activity that requires participation in regional, state and national organizations whose activities directly affect the City's interests or airplane travel and/or overnight stays requires prior approval by a majority vote of the City Council. AUTHORIZED EXPENSES The following expenses are authorized to be paid for or reimbursed by the City: Exhibit"A" Page 1 of 3 1.Transportation. City Council member(s) will use the most economical form of transportation reasonably available, consistent with the individual City Council member(s) travel and scheduling requirements when booking travel, including hotel and plane fare. A. Mileage for personal vehicles. The City will reimburse City Council member(s) for the use of personal vehicles at the then-current U.S. Internal Revenue Service rate. The City will not reimburse City Council member(s) for any other personal vehicle expenses. When calculating mileage, the City will use the lesser of(1) the distance from the City Council member(s) residence of record or (2) actual miles traveled. Mileage reimbursement shall not exceed the cost of the lowest available airfare. B. Rental vehicles. The City will pay for or reimburse City Council member(s) for the actual cost of rental vehicles if a rental vehicle is more economical than other forms of transportation. C. Airfare and airport transportation. The City will pay for or reimburse City Council member(s)for the actual cost of airfare in coach class. If necessary,the City Council may approve payment/reimbursement of business class air travel or the equivalent. The City will reimburse City Council member(s) for the cost of airport transportation by taxi(including Uber or Lyft), shuttle, ride share, or parking, as applicable. 2.Lodging. The City will pay for or reimburse City Council member(s) for lodging expenses incurred in attending an authorized activity. The City will provide a TOT exemption certificate for the City Council member to present to the hotel. Lodging expenses are authorized only for events located outside of a 50-mile radius of the City. The City will reimburse City Council member(s)up to the applicable U.S. General Services Administration per diem rate as set forth at gsa.gov/travel/plan-book/per-diem-rates. 3.Meals. The City will reimburse City Council member(s) for dining expenses incurred while attending (1) a conference, seminar or meeting outside of the City; or (2) a City related business meeting within the City. The City will reimburse City Council member(s) up to the applicable U.S. General Services Administration per diem rate for each separate meal as set forth at gsa.gov/travel/plan-book/per-diem-rates. The City will not reimburse City Council member(s) for alcohol expenses. 4.Registration. The City will pay for or reimburse City Council member(s) for the actual and necessary cost of registration for attendance at an authorized event. 5.Incidentals. The City will reimburse City Council member(s) for incidental expenses incurred while conducting official business outside of the City,up to the applicable U.S. General Services Administration per diem rate set forth at gsa.gov/travel/plan-book/per-diem- rates. Reimbursable incidentals include tips for drivers, porters, bellhops, baggage carriers, hotel housekeepers,and internet access connections if necessary in the furtherance of conducting official City business. Exhibit"A" Page 2 of 3 6.Travel Arrangements. Due to individual preferences or needs,and unless otherwise arranged in advance by the City Manager, City Council member(s) shall be responsible for arranging all travel, lodging and event registration for activities authorized pursuant to this policy. UNAUTHORIZED EXPENSES The City will not pay for or reimburse City Council member(s) for expenses not related to an ultimate benefit to the City including but not limited to: Barber and/or beauty shop services; Fines for traffic or parking violations; Any person accompanying a City Council member; Personal telephone calls; Fitness/health facility use; Alcoholic beverages; Entertainment(theater, movies, sporting events); Personal losses incurred while on City business Other expenses not otherwise authorized by a majority vote of the City Council. PAYMENT AND REIMBURSEMENT PROCEDURE 1. Notice to City Council. Council member(s) shall notify the City Council at its next regularly scheduled meeting, during Reports from City Council members of any travel requiring reimbursement. Excluding Unauthorized expenses, if a City Council member is seeking reimbursement for an expense such as airfare or hotel or an expense that does not fall within the authorized expenses in this policy, the proposed expense shall be agenized for consideration by the City Council. 2.Reimbursement. Each City Council member seeking reimbursement must: A. Excluding training required by law, City Council member(s) shall present a brief report on the authorized activity attended to the City Council at its next regularly scheduled meeting, during Reports from City Council members. If multiple City Council members attended, a joint report may be made. B. Prepare an expense report on a City form and submit it to the Finance Department, with a copy to the City Clerk, within 30 days after the expense being incurred. The expense report must(1)define the benefit of the expense to the City and document that the expense in question met the requirements of this policy; (2) include details of meeting or meal attendees and issues discussed; (3) identify the dates of travel and, for mileage reimbursement, actual miles traveled; and(4)be accompanied by receipts documenting each expense. Expense reports shall be maintained as a public record. Exhibit"A" Page 3 of 3