HomeMy WebLinkAboutStaff Report 2412-3923Item No. 26. Page 1 of 1
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City Council
Supplemental Report
From: Ed Shikada, City Manager
Meeting Date: December 16, 2024
Item Number: 26
Report #:2412-3923
TITLE
SUPPLEMENTAL REPORT: Policy and Services Committee Recommendation to Adopt a Policy to
Reimburse Council Members Up to $2,000/year from the City Council Contingent Account for
Technology Resources and Other Actual and Necessary Expenses Incurred in the Performance
of Official Duties
BACKGROUND
Staff is sharing this report (supplemental attachment A) that was presented at the March 12,
2024 Policy & Services Committee at the request of one of the Policy & Services Committee
members.
ATTACHMENTS
Supplemental Attachment A: P&S March 12, 2024 Staff Report Item 2
APPROVED BY:
Ed Shikada, City Manager
CITY OF PALO ALTO
Policy & Services Committee
Special Meeting
Tuesday, March 12, 2024
7:00 PM
Agenda Item
2.Discussion and Recommendation to Council on potential allocation of $2,000 annually
from the City Council contingency fund to each Council member for expenditures
consistent with defined purposes
Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: March 12, 2024
Report #:2402-2688
TITLE
Discussion and Recommendation to Council on potential allocation of $2,000 annually from the
City Council contingency fund to each Council member for expenditures consistent with defined
purposes
RECOMMENDATION
Staff recommends that the Policy and Services Committee further discuss the referral from the
City Council related to City Council Discretionary Expenditures and make a recommendation to
the City Council for inclusion in the City Council Procedures and Protocols Handbook.
BACKGROUND AND ANALYSIS
On February 13, 2024, the Policy and Services Committee discussed a referral from Council
regarding a potential provision of $2,000 annually from the Council contingency fund for each
Council member for expenditures consistent with purposes to be defined by Council policy. At
that meeting, the Committee indicated interest in defining permitted purposes as
reimbursement for actual and necessary expenses incurred in performance of official duties.
The Committee voted to bring the item back to committee for further discussion of program
details and to receive information about similar programs in neighboring jurisdictions.
State law, as specified in Cal. Govt. Code section 53232.2., authorizes expenditure of local funds
to reimburse City Council members for “actual and necessary expenses incurred in the
performance of official duties” and requires certain procedures for implementing such a policy.
Adoption of Written Reimbursement Policy
State law requires that the legislative body adopt a written policy specifying the types of
occurrences that qualify for reimbursement. This encompasses expenses related to travel,
meals, lodging, and other actual and necessary expenditures incurred in the performance of
official duties. Other actual and necessary expenditures could include computer equipment,
software, cellular phones, and subscriptions if used for primarily for performing official
governmental duties with only de minimus (i.e. minimal) personal use permitted.
The policy may also specify the reasonable reimbursement rates. In the absence of specified
rates within the policy, the local agency is required to follow the Internal Revenue Service's
reimbursement rates for travel, meals, lodging, and other necessary expenses, as detailed in
Publication 463. Furthermore, members of the legislative body must prioritize the use of
government and group rates provided by transportation or lodging services for travel and
lodging when such rates are available.
Expenses not covered by the established reimbursement policy, or the IRS reimbursable rates,
must receive prior approval from the governing body in a public meeting before the expense is
incurred. If a member of a legislative body chooses to incur additional costs that are above the
rates established and those costs have not been approved by the legislative body, then the
member of a legislative body may do so at their own expense.
Monitoring and Reporting Requirements
In accordance with Government Code section 53232.3, local agencies that reimburse members
of a legislative body for actual and necessary expenses must provide forms for officials to report
their expenses. Expense reports must document that reimbursable expenses meet the existing
policy for expenditure of public resources. Members of the legislative body must submit
expense reports within a reasonable time after incurring the expense, as determined by the
legislative body, and must include receipts documenting each expense.
Additionally, members must also provide brief reports on meetings attended at the local
agency's expense at the next regular meeting of the body. Reimbursement records are public
records and subject to disclosure on request.
Penalties For Violating Reimbursement Policies
Pursuant to Government Code section 53232.4, members who do not follow expense reporting
policies may be exposed to the following penalties:
(a) The loss of reimbursement privileges.
(b) Restitution to the local agency.
(c) Civil penalties for misuse of public resources pursuant to Section 8314.
(d) Prosecution for misuse of public resources, pursuant to Section 424 of the Penal
Code.
Amounts paid consistent with these procedures are excluded from salary that is otherwise
subject to the maximums under State law (Govt. Code § 36516(e)) and the Palo Alto Charter,
and complying with Sections 53232.2 and 53232.3, as well as any adopted City policy, will
ensure that these funds are not counted as salary. Council has directed that salary be increased
to the state-law limit, leaving no room, consistent with the current Charter provision, for
additional funds should they be classified as salary.
Existing Reimbursement Policies
Under the City Council’s Procedures and Protocols Handbook and Management Compensation
Plan, the Mayor and Vice Mayor currently respectively receive $150 and $100 monthly to
defray additional expenses of these offices. Expenses are not currently documented. Council
member travel expenses are covered consistent with the Citywide Travel Arrangements and
Expense Reimbursement Policy (Administrative Policy 1-02/ASD), attached.
We have also reviewed reimbursement policies from neighboring cities such as Mountain View,
Sunnyvale, Los Altos, Los Gatos, Redwood City. These policies all appear to comply with State
law and would offer valuable insight in developing a reimbursement policy suitable to Palo
Alto’s needs. Key considerations for developing a reimbursement policy include:
Budget Allocation: Determining the appropriate budget for reimbursable expenses.
Review Process: Identifying the Department responsible for reviewing requests for
reimbursement and issuing reimbursement checks.
Procurement Cards: Considering the issuance of procurement cards for certain City-
related expenses.
Expense Reporting: Assigning the Department to receive and manage expense report
forms.
Reimbursable Activities: Defining the scope of activities eligible for reimbursement and
eligible rates.
Council Member Assistants
At the February 13 meeting, Committee members mentioned an interest in using funds for
stipends for assistants retained by Council Members to support Council members in various
aspects of their duties. Historically, the Palo Alto Council has not provided paid public
employees to serve as staff for individual Council members. Council members who use
assistants make their own arrangements privately. If public funds were used to compensate
assistants, these individuals likely would need to be treated as public employees. This has
significant implications the City’s governance model and raises many issues that would impact
Council members, assistants, and City administrative staff (e.g. Human Resources) such as
minimum wage applicability, supervisory responsibilities, scope of duties, and workplace
requirements. Exploration of these issues is beyond the scope of this Council referral. If the
Committee is interested in expanding the scope of this topic to include paid staff for Council
members, this should be considered by Council as an additional referral.
FISCAL/RESOURCE IMPACT
The City Council contingency fund total allocation is determined each year through the budget
process and this program proposes to dedicate some of those funds, thus this is not new
funding. However, depending on the program parameters discussed, the appropriate means of
budgeting and staff time resources to administer the program would need to be further
assessed.
ENVIRONMENTAL REVIEW
Not a project.
ATTACHMENTS
Attachment A: Los Gatos Reimbursement
Attachment B: Mountain View Reimbursement
Attachment C: Sunnyvale Reimbursement
Attachment D: Los Altos Reimbursement
Attachment E: Redwood City Reimbursement
Attachment F: City Travel Policy
Attachment G: February 13, 2024 P&S Report on Council Discretionary Expenditures
APPROVED BY:
Ed Shikada, City Manager
Attachment A
CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
PURPOSE:
ThisPolicyestablishes theguidelines andstandardsregardingreimbursement ofactual
andnecessary expenses oftheCityCouncil incurredintheperformance ofofficial City
duties.
1.Policy, Legislative Intent, andGeneralRules
a.Councilmembers mayincurmiscellaneous expenses infulfilling the
responsibilities ofanelectedofficial. Allexpenditures ofpublicfundsmust
berelated totheperformance ofCity business. Councilmembers maybe
reimbursed foractualandnecessaryexpenses incurred intheperformance of
authorized Citybusiness andofficialdutiesinconformance withthisPolicy.
b.Cityfunds, equipment, supplies (including letterhead), titles, andstafftime
mustonlybeusedforauthorized Citybusiness, including theDocument
Processing Center, voicemailservices, document imaging systems,
computers, copymachines, etc.
c.Councilmembers, uponrequest, willbeprovided with Cityprocurement
cardsorcreditcards, whichmaybeusedonlyforthepurposes andinthe
amounts provided forinthisPolicyandtheProcurement CardPolicy 2-11.
Detailed receiptsofchargesonCitypurchasing cardsmustberemitted tothe
manner insupport ofthemonthly statements.
d.Theamounts identified inthis Policyforeachspecific purpose cannotbe
exceeded orcombined withanamount budgeted foranother purpose, nor
mayamounts becarriedoverfromoneyeartothenext.
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Attachment B
CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
2.Authorized Expenses
Expensesincurred inconnection withthefollowing types ofactivitiesgenerally
constitute authorized expenses, aslong astheotherrequirements ofthisPolicyare
met:
a.Communicating withrepresentatives ofregional, State, andnational
government onCity-adopted policypositions;
b.
knowledge levelsdirectly relatedtoCitybusiness;
c.Attending aconference ororganized educational activityconducted in
compliance withGovernment CodeSection54952.2(c), including ethics
training required byGovernment CodeSections 53234, ; etseq.
d.Attendingameeting ofanymulti-jurisdictional governmental body onwhich
e.Attending anymeeting orproviding serviceonagivendayattheformal
request oftheCouncilorattending otherregionaleventsormeetingswhere
representing theCityinanofficial capacity;
f.Participating inregional, State, andnational organizations whoseactivities
butnotlimitedto, National League of
Cities, LeagueofCalifornia Cities, Association ofBayAreaGovernments,
Sustainable Communities, Santa Clara Valley TransitAuthority, orU.S.
Conference ofMayors;
g.AttendingCityevents;
h.Implementing aCity-approved strategyforattractingorretaining businesses
totheCity, whichwilltypically involveatleast onestaffmember; and
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
i.Dinner oradmissionexpenses foraspouse orguestin accordance with
Section 8.a.
3.Expenditures Requiring Council Approval
Except assetforthinSection2, allotherexpenditures require priorapproval by
theCouncil atapublicmeeting. Any questions regarding thepropriety ofa
particulartypeofexpense should beresolved bytheCouncil before theexpense is
incurred.
4. Erroneous ChargesofPayments
Expenses charged toaCity accountorpaidinerrorthatareunauthorized per
Section 4.aandnonrefundable expenses perSection4.bunderthisPolicy shallbe
reimbursed totheCitywithin 30daysofnotification.
a.Unauthorized Expenses
Examplesofexpenses thattheCitywill notreimburseinclude, butarenot
limited to:
Thepersonalportionofanytrip; anyportion ofthetripnotrelated to
Citybusiness;
Expenses foranyindividual otherthantheCouncilmember onCity-
related business, activities, orevents, exceptassetforthinSection8.a;
Entertainment expenses notrelated toCitybusiness, forexample:
theater, in-roommovies, sportingevents oractivities, personal services,
voluntary events;
Personalautomobile expenses, includingrepairs, trafficcitations,
insurance, orgasoline, withtheexception ofmileage reimbursement,
pursuant toSection7.b;
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
PersonallossesincurredwhileonCitybusiness;
Expenditures ofapersonalnature (incidentals, clothing, etc.);
Reimbursement forlocalmealsnotassociatedwithanovernightevent;
Reimbursement forpolitical contributions orexpenses forevents
sponsored bypolitical organizations, candidates, office holders, orfor
otherpoliticalpurposes;
Charitable contributions, expenses, orevents;
Expenses reimbursed byotherorganizations. Expenses forwhichaCity
Councilmember receives reimbursement from anotheragency arenot
reimbursable. Theamountoftravelexpense reimbursed totheCityby
organizations suchastheU.S. Conference ofMayors, National Leagueof
Cities, LeagueofCalifornia Cities, orotherorganizations fortravel bya
Councilmember shall becredited tothetravel budgetofthat
Councilmember;
b.Reimbursements ofNonrefundable Expenses
Councilmembers mustreimburse theCitywithpersonal funds forany
nonrefundable expenses ifthey registerforanevent (e.g., conference, dinner
meeting, etc.) butdonotattend, unlesstheydesignate asubstitute attendee,
oriftheycannot attendastheresultofapersonal illnessoremergency, which
islimitedtoonepaideventperyear.
5. Management Development Funds
Councilmembers areeligible forManagement Development Funds, which maybe
combinedwithamountsprovided under thisPolicy, asfollows:
a.
Management Development Policy No. 3-2.
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
b.Amounts shallbethesameasunrepresentedemployees.
c. Travel Funds maynotbeusedtosupplement Management Development
Funds.
6. Equipment, Supplies, andCommunication Expenses
a.Miscellaneous Supplies
Thefollowing supplies andmaterials areavailable toCouncilmembers atCity
Hallforuseinconducting officialCitybusiness:
Acardkeyforaccess toCity Hall, tobereturned when a
Councilmember leaves office;
Miscellaneous officesuppliessuchaspaper, writing materials, digital
storagedevices;
Businesscards.
b.CitySouvenirs
Citysouvenirs areintended forofficialdistribution. Alogsheetdescribing
thetypeandnumber ofitemsrequested byaCouncilmember shallbe
maintained bytheCityClerkandcopyofthelogshallbedistributed tothe
Councilquarterly orsemiannually. Souvenirs shallberegulated tothe
following typesofitems:
OneCitylogoitemperyear, atthediscretion oftheMayor, isincluded
aspartoftheCityCouncilbudget.
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
c.Communication CostsandAllowances
Communication tools (e.g., telephones, faxlines, cell phones, dataplans,
computers andInternetaccess) arenecessary forCouncilmembers to fulfill
theirresponsibilities ofcommunicating withconstituents, Citystaffmembers,
andothersinthecourse ofCitybusiness. EachCouncilmember shallreceive
anannual communication budget, andtheMayor shallreceive a
supplemental amount asadoptedbytheCouncil intheannualAdopted
Budget. Thisbudgeted amountisintendedtocoveralltelecommunication
costsincluding telephones, faxlines, cellphones, data plans, computers,
Internet access, etc.
Acommunications allowance orstipend shallbe provided toeach
Councilmember semi-annually basedontheamountincluded intheAdopted
Budget forcellulartelephones andtablet devices. Thecommunication
allowance shallbeareasonable amounttorepresent thereimbursement for
actual costsassociated withtelecommunication itemsnotedabove.
Forallothercommunication costs (e.g., telephone, faxlines, computer data
plans, and Internet access), amounts shallbereimbursed basedonactual
costs anddetailreceiptsshallberequired forallreimbursement claims.
Suchitemsusedshallbeforbusiness purposes witha amount ofdeminimis
personalusageallowed. Amounts provided aresubjecttoIRSregulations
andguidelines.
d.Per-Term Allowances
Councilmembers musthaveofficeequipment todischargetheirfunctions and
communicate withstaff. Foreachtermofoffice, Councilmembers willbe
reimbursed byproviding supporting documentation, uptotheamount
adopted bytheCouncil forofficeequipment. Amounts may notbe
combined. Anyunspentamountsdonotcarryforward toasubsequent term.
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
Computer, Printer andPeripheral Equipment, FaxCopier, Answering
Machine, CellularPhone, Pager, Personal Devices (suchasasmart
phone, tablet, laptop, etc.), and theactualcostsofinstalling uptotwo (2)
telephonelines, incurred afterelection totheCouncil: amountperterm
asincludedintheAdoptedBudgetforthefiscalyearelected tooffice.
Reimbursement forwarrantyplansorrepairs ofofficeitemsisallowed.
Allowance maynotbeusedformonthlyservice orusage charges.
7. CouncilTravel, Meals, andLodging
Allexpenses mustbeincurred inthecourse ofofficialCouncilmember dutiesfor
theCity. Theexpenses described inthissection shall notexceed thebudget
allocated toeachCouncilmember inSection 9 ofthispolicy. Allexpenses and
reimbursement claimsmustbedocumented with detailed receipts; however, a
CityIncidental Expense Receipt Form maybeusedtoclaimreimbursement for
thoseincidental expenses forareceipt which islostornotnormally provided.
Expenses permittedwhiletravelingoutside oftheCityinclude, butarenotlimited
to, thefollowing:
a.Airfare. Transportation coststoandfromtheauthorized destination shallnot
exceed economy-classairfare unless suchfareisnotavailable.
b.Automobile Mileage; Parking; Tolls. Parking, bridge, androadtolls
including FasTrak andmileage (which shallberecorded andreimbursed at
thecurrent Internal RevenueServiceratefornonitemized travel)). \[NOTE:
See .\] . www.irs.gov
c.Car Rental. Rentalratesmust be thebestavailable rateforamidsize or
smallercar.
d.Taxis/Shuttles. Taxiorshuttlefares, including a15percentgratuityperfare,
whenthecostofsuchfaresisequaltoorlessthanthecostofcarrentals,
mileage, andparkingcombined, orwhensuch transportation isnecessaryfor
timeefficiency.
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
e.AirportParking. Long-termparking mustbeusedfortravelexceeding 24
hours.
f.Baggage. Baggage feesforuptotwopiecesofcheckedbags.
g.Telecommunication Charges. Official business incurredwhen travelingsuch
as faxing, photocopying, orcomputer service; andothernormal, necessary,
andreasonable expenses.
h. Lodging. Iflodgingisrequired inconnection withaconference ormeeting,
lodging expenses shallnotexceedthemaximum groupratepublished bythe
conference oractivity sponsorforthemeeting ifsuchrates areavailable atthe
timeofbooking. Ifthegrouprateisnotavailable, theCouncilmember shall
usecomparable lodgingatthebestavailablerateforthatarea.
i. Meals. Meal expenses, associated gratuities, andincidentals uptoatotalof
OneHundredDollars ($100) perday, withdetailedreceipts provided.
8. LocalandMiscellaneous Expenses
a.Guests. Dinneroradmission expenses whichrequire aCouncilmembers
attendance asanofficialrepresentative oftheCityandatwhich a guest
wouldbeinvited toattend, ispermitted. EachCouncilmember isallowedto
utilizehisorherexpenseaccountforguestexpenses foramaximumoffour
events. TheMayorisallowed twoadditionalguestexpenses foratotalofsix
events.
b.LocalMeals. CostsincurredbyaCouncilmember forlocalmeals orlunches
inthecourseofmeetingwithconstituents, staff, orotherCouncilmembers are
not reimbursable
procurement card.
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
c.Admission Cost. Theportion ofthecostofadmission oraticket ordonation
toaneventwhichrepresents acharitable, political, orother contribution is
notanauthorized expenseandnotreimbursable.
d.Professional Development. Costsincurredforprofessional development
seminars, publications, andmemberships) related toaCouncilmembers
dutiesasanelectedofficialmay bereimbursed asprovided for
Professional/Management Development Program Policy andthispolicy, and
arethesameamount asprovided tounrepresented employees.
9. Budget
a.Annual Council Budget. Theannualbudget fortheCouncilexpenses shallbe
recommended byasubcommittee oftheCouncil andapproved by the
CouncilintheannualCitybudget.
b.MayorsBudget. Asupplemental amountmaybeallocatedtotheMayor to
beusedasacontingency fortheadditional dutiesoftheoffice. Becausethe
term oftheMayordoesnotcoincide withthefiscalyear, theincumbent
Mayor willbeallocated one-halfofthisamountfor eachofthetwofiscal
years inoffice.
c.BudgetAdjustments. Outgoing Councilmembers shallbeallocated 50
percent ofthe budgetfortheir seat. Incoming Councilmembers shallbe
allocated 50percentofthebudgetfortheirseat.
d.Training andConference Reserve. Atraining andconference reserve (the
Reserve) account shallbeestablished inanamountapproved bytheCity
Council. TheReserve maybeusedbyanyCouncilmember, Mayor, orVice
Mayorwhohasexhausted theamount budgeted forTraining, Conference,
andTravelfortheirseat, forapurpose consistent withthisPolicy. TheMayor
orViceMayor mustgivepriorapproval foruseoftheReserve by
Councilmembers inaccordance withSection10.d.
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
e.Councilmember Budgets. Followingadoption oftheannualbudget, upon
request, staffwillwork witheach Councilmember todevelop anannual
budgetwithintheallocated amount for eachmember inorder toprovide a
monitoring toolforCouncilmembers.
f.NoTransfer ofCouncilmember Budget. Thebudget amount allocated toa
Councilmember maynotbeusedtopayfortheexpensesof, ortransferred to,
anotherCouncilmember.
g.Amendment. Thebudget maybeamendedbytheCouncil atanytime.
10. Monitoring andReporting
a.Expense Report. Allexpenses andclaims forreimbursement shall be
submittedtotheFinance andAdministrative ServicesDepartment onCity
expensereportforms within 60daysoftheincurredexpense, andwithinthe
fiscalyearinwhich theywere incurred. Allexpense reportsshall be
accompanied bydetailedreceipts and shalldocument thattheexpenses
complywiththisPolicyforexpenditure ofpublic resources. Inability to
providesuchdocumentation inatimelymannermayresultintheexpense
beingborne bytheCouncilmember. Allexpensereports aresubjecttoaudits.
b.TrackingExpenses. Expenses ofCouncilmembers are tracked individually
againstthebudgeted amount andreported toCouncilmembers asrequested.
c.Receipts Required. Detailed, itemized receiptsare requiredforallexpenses
andreimbursement claims.
d.UseofReserve ExceptasOtherwise ProvidedinSection 9.d ofthisPolicy.
TheMayor, orVice Mayorintheabsence oftheMayor, mustapprove useof
theReserve under Section5.dofthispolicyandshall interpretanyquestions
ofpolicy, legislative intent, andinterpretation ofaquestioned expenditure
consistent withthisPolicy. Neither theMayornorViceMayormaymake
interpretations ordeterminations regarding theirownexpenditures oruseof
the Reserve. The ViceMayormustapprove anyuseoftheReserve for
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CITYCOUNCILPOLICY
SUBJECT: CITYCOUNCIL POLICYGOVERNING EXPENSES OFTHE NO.: A-2
COUNCIL
expenditures oftheMayor. Disputesmaybeappealed totheCouncilFinance
Committeebyindividual Councilmembers.
e.PersonalResponsibility forPayment. Expenditures inexcess ofthebudget
amounts oranyexpenditure notincompliance withthisPolicy isthe
responsibility oftheindividual Councilmember.
f.Report totheCouncil. Each official shallbrieflyreport onmeetings attended
atCityexpense atthenextscheduled Council meeting. Ifmultiple
Councilmembers attended, ajoint reportmaybemade.
11. Violation ofThisPolicy
Useofpublicresources orfalsifyingexpense reports inviolationofthisPolicymay
resultinanyorallofthefollowing: (1) loss ofprocurement cardand/or
reimbursement privileges; (2) ademandforrestitution totheCity; (3) theCitys
reportingtheexpenses asincome totheelectedofficialtoStateandFederal tax
authorities; (4) civilpenalties ofupto $1,000 perdayandthreetimesthevalue of
theresources used; and (5) prosecution formisuseofpublic resourcespursuant to
Section424ofthePenalCode.
Revised: March 21, 2017, Resolution No. 18129
Revised: April24, 2007, Resolution No. 17203
Revised: June22, 2004, Resolution No. 16904
Revised: November 19, 2002, Resolution No. 16748
EffectiveDate: July29, 1963
CNLPOL
A02-CP
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COUNCIL POLICY MANUAL
7.4.2 – Page - 1
Policy 7.4.2 Council Equipment, Materials, and Supplies
POLICY PURPOSE:
It is the purpose of this policy to establish guidelines and standards regarding the provision of supplies and materials for Councilmembers.
POLICY STATEMENT:
I.Certain supplies and materials are required by Councilmembers to discharge theirfunctions. The City Manager shall make available to Councilmembers the following
materials and supplies when requested, which shall be used predominantly for City
business and only incidentally for personal use:
A.The means to access City Hall, both the Office of the City Manager administrativesuite as well as the Council conference room.
B.One file cabinet (upon request) per four-year term to be returned to, or purchasedfrom, the City at market rate when a Councilmember leaves office.
C.Customary office supplies and business cards for official City use. Individual
Councilmembers shall have the choice of business cards from a set of standard
City options. Councilmembers shall not use business cards that do not reflect theirofficial position or title (i.e., Mayor, Vice Mayor, or Councilmember) at the timeof use.
D.A technology allowance in the amount of $1,720 per Councilmember per four-
year term for the purchase of equipment including, but not limited to, a personalcomputer; printer; laptop; fax; or mobile electronic device, such as a cell phone,tablet, or notepad. Equipment purchased with this allowance shall be consistentwith standard City issue, or approved by the Director of Information Technology,
and shall be returned to or purchased from the City at market rate when a
Councilmember leaves office. An amount not to exceed $79 per month (non- taxable) shall be reimbursed for monthly service charges for equipment purchasedunder this policy.
1. Commencing on January 1, 2022, and annually on January 1 thereafter,
the technology allowance and monthly service charge reimbursement shallincrease by a percentage equal to the percentage increase in the precedingOctober’s twelve-month rolling average of the Consumer Price Index-Urban (CPI-U), or successor index, for San Francisco-Oakland-San Jose,
as determined by the United States Department of Labor, Bureau of
Consumers. The CPI-U base index year shall be calendar year 2021.
Attachment C
COUNCIL POLICY MANUAL
7.4.2 – Page - 2
CPI-U Adjusted Amounts
Year Technology Allowance Service Charge Reimbursement
2021 $1,720 $79
2. Public Records Act and Brown Act issues are associated with the use of
these types of equipment. To the extent the equipment is used for the
performance of official City business, much of the data contained in the equipment is public property and considered a public record, therefore subject to all Public Records Act and Brown Act policies.
E. Newly-elected and incumbent Councilmembers shall receive one City logo
branded piece of clothing per Council term year, style to be chosen by individual Councilmembers from standard choices available. Newly-elected Councilmembers will receive their first piece of clothing in the first quarter following the certification of election results. In the first quarter of the calendar
year, a request for style preference will be sent to newly-elected and incumbent
Councilmembers from the Executive Assistant to the City Council in preparation of ordering shirts for the next calendar year.
F. Newly-elected Councilmembers, or Councilmembers who have changed titles
after a Council election, shall receive a City name badge reflecting their new title. G. Technical Support. Technical support to maintain and facilitate the use of equipment is limited to official duties. Support will only be provided for equipment purchased in accordance with section I.D. of this policy, and only at
the same level as is provided to City employees. Councilmembers must bring equipment to City facilities for repair or on-site maintenance. The Executive Assistant to Council coordinates the transport and return of equipment to be serviced by IT staff.
(Adopted: Council Policy Update, RTC #14-0061 (November 25, 2014); Amended RTC #15-0317 (April 7, 2015); RTC #21-0099 (January 12, 2021)) Lead Department: Office of the City Manager For reference, see also:
• Council Policy Manual 7.4.1, Section II, Implementation
• Council Policy Manual 7.4.11, Council Files
• City Charter, Section 807, Prohibition Against Councilmanic Interference
• Code of Ethics and Conduct for Elected Officials
COUNCIL POLICY MANUAL
7.4.4 – Page - 1
Policy 7.4.4 Council Travel and Conferences
POLICY PURPOSE:
It is the purpose of this policy to define the City’s expectations of Councilmembers who travel in
connection with their work responsibilities and to clarify which expenses the City will fund and
which expenses are considered the personal responsibility of the traveler.
POLICY STATEMENT:
The City expects to pay all reasonable costs incurred by Councilmembers traveling on approved
City business; travel is a privilege and not a right conferred by election; Councilmembers are
expected to use sound fiscal stewardship when expending public funds, and to travel in the most logical and least expensive manner possible.
I. Authorization.
A. Mayor approval (or Vice Mayor for Mayor) is required in advance of any
Councilmember travel that requires a commitment of City funds.
Authorization shall be sought via submittal of a Travel Authorization
Request (TAR).
B. Any denied travel shall be accompanied by the reason(s) for denial, which
shall be limited to the following:
1. Requesting Councilmember has insufficient funds to pay for the
intended travel. (See Section II, Council Travel Budgets, below.)
2. The purpose of the intended travel does not meet one or more of
the following:
a. Represent the City in a Council-approved/ratified Intergovernmental Relations role.
b. Advocate official City positions on key legislation, policies
or programs.
c. Attend a conference or meeting arranged by an
organization of which the City is a member.
d. Conduct presentations at a conference or workshop with the
goal of improving the efficiency and performance of government in general.
COUNCIL POLICY MANUAL
7.4.4 – Page - 2
e. Become better informed regarding key legislation, policies
or programs impacting local government.
3. Failure to adhere to the provisions of this Council Policy 7.4.4. (i.e., not submitting expense forms or receipts on time).
II. Travel Budgets.
A. Council shall establish travel budgets as part of the annual City budget process.
B. Travel budgets for Councilmembers up for election or due to leave office
in any particular year shall be prorated to ensure adequate travel funds are
available for incoming Councilmembers. The percentage of travel funds allocated to outgoing/incoming Councilmembers shall be determined by
staff and based on ensuring the ability of whoever is in office at the time
to attend the scheduled dates of the National League of Cities (NLC)
Congressional City Conference; the NLC Congress of Cities and
Exposition; and the League of California Cities’ (LCC) Annual Conference and Exposition. Any unspent funds allocated to an outgoing
Councilmember’s seat shall be carried over to the incoming
Councilmember’s budget. The Mayor’s budget will be allocated similarly.
C. Each Councilmember will be provided with an update of his/her travel budget, including balance and itemization of expenses on a monthly basis
by the Executive Assistant to Council. The Mayor (who authorizes
payment of expenses) will also receive the same information on each
Councilmember’s expenditures. The Executive Assistant to Council shall
send a notification to any Councilmember whose budget is close to being overdrawn, copying the Mayor, the City Manager, and the Assistant City
Manager.
D. Councilmembers shall not exceed authorized amounts budgeted for travel.
Any and all travel expenses in excess of a Councilmember’s approved budget shall be reimbursed to the City by the Councilmember.
E. Mid-year increases in travel budgets are discouraged and shall generally
be considered only if Councilmembers can demonstrate that additional
amounts are for unforeseen expenses that could not be anticipated prior to the initial adoption of the annual travel budget.
F. There are two ways for a Councilmember to increase his/her approved
travel budget:
1. The adopted travel budget can be amended on a case-by-case basis
during the fiscal year by approval of the City Council at a public
COUNCIL POLICY MANUAL
7.4.4 – Page - 3
meeting. Councilmembers desiring an increase in their annual
travel budget shall provide an estimate of the additional amount
prior to actual travel or expenditure of funds. Justifications for the
budget increase shall also be included with the request for additional funds. All increases in travel budgets must be approved
by a majority vote of the full Council prior to actual travel or
expenditure of additional funds.
2. Councilmembers may choose at any time to relinquish a portion of their unspent travel budget to another Councilmember. Any
Councilmember wishing to do so shall notify the Executive
Assistant to Council and the City Manager in writing. Otherwise,
the remaining balance of unspent funds at the end of the fiscal year
shall return to the General Fund.
G. Any carryover of Council travel budgets from one fiscal year to the next
shall require the approval of the Council during the annual carryover
process.
III. Travel Arrangements.
A. Travel arrangements shall be made as far in advance as possible to obtain
the best possible fares and rates. Registration for conferences and training
shall be made far enough in advance to take advantage of early (discounted) fees, and to avoid late registration fees. If travel arrangements must be canceled for any reason, the person who made the arrangements
shall cancel them in sufficient time to prevent the City from incurring
unnecessary costs when possible.
B. Unless Councilmember’s opt to book their own travel, staff shall makes arrangements for City Council travel including registrations, transportation
and lodging, and travel cash advances (if requested by the
Councilmember). Staff shall prepare a travel information packet for each
Councilmember traveling to any of the main annual conferences: the National League of Cities (NLC) spring and fall conferences, the League of California Cities (LCC) annual fall conference, and the U.S.
Conference of Mayors (USCM) spring and summer conferences.
IV. Transportation.
A. Travelers shall use whatever mode of transportation is the most logical
and least expensive. If a Councilmember elects to use a mode of
transportation other than the most logical and least expensive, the City
shall pay only the cost of the most logical and least expensive mode.
COUNCIL POLICY MANUAL
7.4.4 – Page - 4
B. Air Travel. Councilmembers shall not limit their air travel options by
specifying an airline. The airline offering the lowest fare for a logical
route shall be selected.
C. Use of Private Vehicles. Councilmembers shall be compensated for the
use of their private vehicles for approved business travel at the current IRS
standard mileage rate, provided that it is the most logical and least
expensive method of transportation. The City shall pay all expenses, such
as bridge tolls and parking fees, incurred as the result of a Councilmember’s authorized use of a vehicle while traveling on City
business. Councilmembers requesting reimbursement for the payment of
such expenses shall obtain receipts and submit them with their Travel
Expense Reports. To drive a City or privately owned vehicle on City
business, Councilmembers must possess a valid California driver’s license. A driver of a privately owned vehicle must also carry adequate
liability insurance coverage, and be responsible for any damage, service,
or repair to the car occurring on the trip, as these costs are included in the
City’s per mile cost reimbursement.
D. Train and Other Mass Transit. Councilmembers shall be compensated for
train or other mass transit fares and fees provided that it is the most logical
and least expensive method of travel.
E. Ground Transportation at Destination. Supplementary transportation within the destination city shall be accomplished by hotel courtesy buses,
local shuttle services or public transportation, if available and logical. Taxi
or car service may be used when no other convenient, less costly mode of
transportation is available.
F. Rental Vehicles. Rental vehicles shall be used only when no other mode of
transportation is available or when alternate transportation would be more
expensive or impractical and must be authorized in advance. If a rental
vehicle is authorized, Councilmembers shall request the least expensive
vehicle category that meets their needs. Optional insurance offered by the rental agency should be declined.
V. Lodging.
A. The City shall pay lodging expenses for approved travel, including the evening preceding or subsequent to a meeting or business event when the
Councilmember would otherwise have to travel from his/her residence
before 6 a.m. or after 9 p.m. to reach or return from his or her destination.
B. When there is not a specific lodging site associated with official City business, the City shall pay for actual lodging expenses up to the General
Services Administration (GSA) maximum rate allowed by location
COUNCIL POLICY MANUAL
7.4.4 – Page - 5
(http://www.gsa.gov/portal/category/21287). Note that the GSA maximum
rate applies to the base room rate only, and does not include taxes. Every
effort shall be made to obtain lodging at or near the facility where official
City business is to take place to minimize travel time and transportation costs. The lodging should also be clean, safe and appropriate for business
travel. Government rates are often available and should be sought.
C. The City shall pay only for standard single rooms at conference,
government or corporate rates. The City shall pay additional charges for a double room only if two Councilmembers share the room. Additional
charges arising from the registration or the sharing of a room with a
spouse or guest are not reimbursable.
D. Councilmembers shall notify the Executive Assistant to Mayor and Council regarding any reservations for lodging they will not use. Any
charge for an unused reservation shall be considered the Councilmember’s
personal expense unless failure to cancel the reservation was due to
circumstances reasonably beyond the Councilmember’s control.
VI. Meals.
A. The City shall pay for a Councilmember’s meals during authorized travel,
including tax and tips, up to the per diem amount established by the GSA
for the destination location (available at: http://www.gsa.gov/portal/category/21287 —“Meals Breakdown”), except
that the City shall not pay for the following:
1. Breakfast on the first day of travel.
2. Meals that the Councilmember elects to purchase from another
source when the meals are included in the cost of a conference,
training registration fee, or hotel stay.
3. Alcoholic beverages.
B. The City shall pay for meals during partial days of travel on a pro-rated
basis, as follows:
1. If the partial day includes travel before 8 a.m., the City shall pay for breakfast.
2. If the partial day includes travel between 11 a.m. and 1 p.m., the
City shall pay for lunch.
3. If the partial day includes travel after 5 p.m., the City shall pay for
dinner.
COUNCIL POLICY MANUAL
7.4.4 – Page - 6
C. Any meal reimbursement where a Councilmember is not required to travel
away from home overnight shall be taxable in the amount of the meal
reimbursement under Internal Revenue Code Section 162(a) (2).
VII. Miscellaneous Fees/Business Expenses.
A. Gratuities/Tips. The City shall pay reasonable and customary gratuities
and tips during City business travel. Tips for meals are included in the standard per diem rate.
B. Business Expenses. The City shall pay for goods and/or services deemed
necessary for the completion of official business, such as faxes, copier and
computer usage, etc.; for Internet usage at actual cost and for all business telephone calls. Cellular phones are often more cost-effective than using
hotel phones directly and should be considered as a primary option.
Collect calls should be avoided. Fees which include use of local calls,
wireless internet access, or other such amenities shall be covered by the
City. The City shall also pay for printed materials, tapes or other training materials that may be available for sale at training, conferences, etc.,
provided that the materials are of benefit to the City and shall remain the
City's property.
C. Baggage Fees. If the airline charges for all checked baggage, the City shall cover the cost for one checked bag only. Excess baggage charges are not
reimbursable.
D. Personal Expenses. Personal expenses shall not be paid by the City. In
addition to those items identified as personal expenses throughout this policy, personal expenses include personal telephone calls, in-room
movies, spas and gyms, optional recreational events in connection with a
conference, laundry or dry cleaning, miscellaneous sundries, or other
items of a personal nature. Personal travel shall not be mixed with
business travel if it will cost the City or harm the City’s interest in any way. The City shall not pay for any expenses of a spouse or other person
who accompanies a Councilmember on business travel.
VIII. Payment of Expenses.
Councilmembers may pay for allowable travel expenses by requesting a travel
advance in an amount up to the total estimated expenses for the trip minus any
pre-paid expenses. Allowable expenses may also be paid out of pocket and
reimbursed upon completion of travel.
IX. Settlement of Expenses.
COUNCIL POLICY MANUAL
7.4.4 – Page - 7
A. Within three weeks of a Councilmember's return from a business trip, a
final accounting of all expenses associated with the trip shall be made by
completing a Travel Expense Report, and an associated Mileage Reporting
Form, if applicable, attaching original receipts substantiating all reported expenses with the exception of meals, and submitting the report to the
Executive Assistant to Mayor and Council.
B. If the Councilmember received a travel advance and actual expenses were
less than the amount advanced, any unused amount of the travel advance shall be returned to the City via a payroll deduction. Should a
Councilmember who has received a travel advance fail to submit a Travel
Expense Report within three weeks of return, the Department of Finance
may deduct the amount of the travel advance from the Councilmember's
next pay check unless the Councilmember can verify timely submission of paperwork or an extension has been requested and approved with valid
reason.
C. If the Councilmember personally paid for allowable business trip
expenses, the City shall reimburse the employee through the bi-weekly payroll process. Reimbursement of travel expenses received from an
outside source must be forwarded to the Executive Assistant to Mayor and
Council upon receipt.
D. The Mayor's signature is required as approval of Council expense statements. The Vice Mayor approves the Mayor's expense statements.
E. To the extent that another agency or organization pays for the travel or
conference expenses of a Councilmember, the City shall not pay for those
same expenses. Councilmembers shall either submit the other agency’s payment to the City (in which case the City shall pay for the
Councilmember’s entire expenses), or refrain from claiming expenses for
that portion of his/her expenses paid for by the other agency.
F. For multiple Council meals paid for by a single Councilmember, the total expense for the meal shall be submitted on the expense report of the
paying Councilmember, along with a written breakdown of amounts to be
charged to the budgets of other Councilmembers.
B. When Councilmembers attend a group dinner where the individual cost of each meal is unavailable, the Mayor shall determine a fair and equitable
method of distributing the charges among the various Councilmembers in
attendance. The City may pay for meals of official guests of the Council.
Costs for meals of guests invited by a single Councilmember shall be
charged to the individual Councilmember’s budget. The cost of meals for guests invited by the Mayor or four or more Councilmembers shall be paid
COUNCIL POLICY MANUAL
7.4.4 – Page - 8
by the City out of the Council program budget but need not be charged to
any Councilmember’s travel budget.
X. Exceptions to the Policy.
This policy does not claim to address all contingencies and conditions. However,
any exception requires Mayoral approval via a Travel Authorization Request
(TAR) for anticipated/known exceptions or via a Travel Expense Report for
unanticipated/unplanned expenses. Requests for exceptions should be accompanied by the traveler’s written justification for the expense.
Examples of exceptions to this policy include, but are not limited to, the
following:
• Unusual business expenses;
• Per diem and/or lodging expenses which exceed GSA limits;
• The purchase of one or more meals from another source even though they were included in a conference and/or seminar registration fee;
• The use of an alternate mode of transportation under the Americans with
Disabilities Act;
• Travel costs in excess of budgeted amounts.
XI. Audits.
The Department of Finance shall conduct periodic audits to ensure compliance
with this policy. Audit results shall be submitted to the Mayor and City Manager.
(Adopted: Council Policy Update, RTC #14-0061 (November 25, 2014); Adopted: RTC #15-
0343 (May 12, 2015))
Lead Department: Office of the City Manager
For reference, see also:
• 7.4.1, Staff/Administrative Support for Councilmembers
• 7.4.12, City Council Appointments to Intergovernmental Agencies
• 7.4.15, Council Advocacy
• City Charter, Section 807
• Code of Ethics and Conduct for Elected Officials
CITY OF LOS ALTOS POLICY AND PROCEDURE
TRAINING AND TRAVEL EXPENSE POLICY
FOR MEMBERS OF LEGISLATIVE BODY
PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the authorization and administration of public funds
for travel expenses and reimbursements for official City business as they apply to members of legislative
bodies. For ease of reading, members of legislative bodies refers to Mayor, Vice Mayor, Council members,
and Commission members in the following policy. Additionally, meetings can refer to any meeting, seminar,
training, or conference in the following policy.
All travel paid by the City shall be for business and training purposes that is of value to the City and its
residents. All expenses incurred while on City business shall constitute actual and necessary expenses that
are reasonable and justified use of public funds. When traveling, members shall choose the most cost
efficient, direct and economical travel options available. This policy shall be consistent with AB 1234.
City officials shall keep in mind that some expenditures shall be subject to reporting under the Political
Reform Act and other laws. All agency expenditures are subject to disclosure under the Public Records Act.
POLICY
The purpose of this policy is to establish business travel guidelines for members that are fair, accountable
and transparent. This policy addresses the criteria for City payment of travel expenses and/or advances
incurred by the member. Only the authorized members are eligible for reimbursement.
This policy supplements the definition of actual and necessary expenses for purposes of state laws relating
to permissible uses of public resources. This policy also supplements the definition of necessary and
reasonable expenses for purposes of federal and state income tax laws.
City funds, equipment, supplies, and staff time must only be used for authorized City business and shall not
exceed the adopted budget appropriation.
The Council's training and travel budget shall include a separate appropriation for all Council members to
attend the League of California Cities Annual Conference.
INTERNAL CONTROLS
In order to safeguard public funds, all of the following internal controls shall be followed by all members
that incur expenses while traveling on City business:
Attachment D
All members are responsible for reading and complying with this policy;,
All training and travel expenses shall be properly authorized by the legislative body in advance of
travel, except in emergency by the City Manager;,
The duties between the travel authorization and reimbursement payment shall be properly
segregated;,
All training and travel expenses shall be properly supported by adequate documentation;,
All reimbursement claims shall be filed in accordance with the policy;,
If an advance check is provided, the member shall make certain the amount corresponds to the total
estimated expenses minus any prepayment;,
It shall also be the responsibility of the member to be aware of and understand the estimate of
expenses established by the estimate. The member shall monitor expenses to ensure they are within
the estimated amount unless unusual circumstances exist and if so, document such circumstances;,
Prior to any travel during which reimbursable expenses will be incurred, the member shall estimate
the expenses which will be incurred as a direct result of the travel and attendance at the training or
conference;, and
It shall be the responsibility of the member incurring the expenses to provide the proper
documentation for each expense, including receipts as required.
GENERAL GUIDELINES
Allowable Expenses
1. Allowable expenses are those that are properly authorized and shall include, but are not limited to,
authorized business expenses incurred while engaging and/or participating in the following activities
and/or events, which meet the criteria listed below:
The meeting is mandatory and/or necessary to accomplish key City goals and objectives. Such
activities include, but are not limited to:
Participating in and attending meetings of regional, state and national organizations
whose activities affect the City’s interests;,
Attending educational seminars designed to improve skill and information levels that
may be benefit to the City;, and
Attending business meetings, functions of local civic or community organizations where
there is a clear nexus between the event and their official City duty, i.e., not purely social
events.
If the training location requires an overnight stay, efforts shall be made to ensure no local option
is available. Government rates shall be used when available. Attendance at conferences and
travel time to and from the conference shall receive prior approval from the legislative body.
Registration fees will be fully paid by the City via check or credit card. Any discounts offered
for early registration or attendance by additional persons shall be obtained whenever possible.
PROHIBITED EXPENDITURES
1. The following are examples, but are not all inclusive, of personal expenses for which the City shall not
reimburse the member, even when incurred in conjunction with other approved reimbursable expenses:
Receipts that are not itemized;,
Any expenses that have not been properly authorized;,
Double-dipping of expenses (submitting the same expense for reimbursement more than
once through the same or various means);,
Expenses incurred as a result of supplemental personal travel;,
Political or charitable contributions or events;,
Family or companion expenses, including those related to child or pet care;,
Entertainment expenses;,
Meals for any person other than the member;,
Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or
gasoline;, air flight upgrades
Personal losses incurred while on City business;,
Inaccurate receipts that are greater than the reimbursable cost of the item;,
Alcohol and gambling expenses;,
Traffic and toll violations;, and
Any expenses incurred by individuals that are not members;.
2. Payments for travel and expenses shall be requested as an advance, prepayment or reimbursement of
appropriate expenses for lodging, food, transportation and incidental expenses. Reimbursement of
expenses shall be made only for members; no reimbursement is allowed for non-members
accompanying the attendee.
3. All reimbursement claims or advances for travel and expenses (including registration) shall be
accompanied by sufficient supporting documentation including properly approved Request for Travel
Authorization Form, original receipts, copies of registration forms, invoices, cancelled checks or
notation for any receipts that are lost. An exception to this requirement is listed under section entitled
Meal Costs.
LODGING, MEALS AND TRANSPORTATION
Airfare
1. Use of air, train, private automobile, or other mode of transportation shall be selected on the basis of
the least expensive option for the City. Government and group rates shall be used when available.
2. Transportation costs to and from the authorized destination shall not exceed advance purchase
economy class airfare unless such fare is not available. Members shall inquire as to any government
discount the airlines may provide. The City shall not pay for upgrades (e.g. seat upgrades or early
boarding options) without prior approval from the legislative body.
3. Members shall receive reimbursement for additional expenses (checked bags, travel insurance, etc.) with
prior authorization.
Automobile
1. Automobile mileage shall be reimbursed at the rate set by the Internal Revenue Service (IRS) in effect at
the time of travel and will be reimbursed for the distance between home and the destination or work
and the destination, whichever is less. The Finance Division shall be responsible for determining the
applicable rate at the time of travel. This amount does not include bridge and road tolls, which are
reimbursable at actual rates. Mileage reimbursement shall be submitted within thirty (30) days of travel.
2. If a personal vehicle is used to and from the airport, the actual mileage shall be reimbursed. If a
personal vehicle is left at the airport, the reimbursement shall be the lesser of the following: round trip
and parking costs compared with shuttle transportation.
3. The necessity for a rental car must be established and authorized in advance by the legislative body.
Only economy car models shall be rented, unless the upgrade is provided at no additional cost to the
City. Prepaid gas is not to be selected, but optional insurance is required and shall be reimbursed. The
member is required to notify the City’s Risk Manager immediately in the event of any incident or
accident related to the rental vehicle.
Taxis/Shuttles
1. Whenever possible, hotel courtesy buses or local shuttle services shall be used. Taxi service shall be
used only when no other convenient, less costly transportation is available.
Lodging
1. No lodging expenses incurred by members within a 50-mile radius shall be reimbursed unless there are
extenuating circumstances with prior legislative body approval.
2. The number of nights in the hotel shall be equal to the number of days at the conference unless prior
legislative body approval for an additional night prior or afterward for necessary and legislative body
related activities.
3. Lodging expenses shall be prepaid directly to the hotel or reimbursed. Prepayment or reimbursement
shall be limited to single occupant room rates. Lodging reimbursement shall not exceed conference
hotel cost or host group rate. If conference lodging is not available, prepayment or reimbursement will
be made for alternate lodging, but shall not exceed the conference hotel cost or host group rate. No
reimbursement shall be made when lodging is at a family/friend’s residence.
Meal Costs
1. The City shall reimburse for documented meal expenses including gratuity (not to exceed 15%),
according to the daily Maximum Federal Rate. For per diem rates within the US, the member shall use
rate listed on http://www.gsa.gov/. If the destination city is not listed, then the rate for the county
applies. If there is no rate for the city or county, the lowest rate applies.
2. Meal expenses, including gratuity, in excess of the daily Maximum Federal Rate shall not be reimbursed
without approval of the legislative body.
3. The per diem rates are to be reimbursed only for full days of travel (travel away from City overnight). If
there is a partial day of travel, the City shall reimburse meal based on the Federal Meal Rate.
4. If any meal is included in the registration fee or the hotel fee, the member shall not receive
reimbursement for the included meal. For example, if lunch is included in the registration fee, then the
full day per diem will be less the per diem allocated for lunch.
5. If a member returns home after 1:00 p.m., the member will receive the per diem for breakfast and lunch.
If a member returns home after 6:00 p.m., the member shall receive the full day’s per diem.
Miscellaneous Expenses
1. Expenses related to City business shall be reimbursed for actual telephone, fax, parking expenses, tolls,
tipping (non-meal related as this falls under the Maximum Federal Rates), taxi, hotel wireless charges, or
other reasonable expenses. Miscellaneous expenses shall be itemized and receipts shall be provided.
Where receipts are not available, a signed declaration of expenditures shall be accepted by the City
Manager or designee at their discretion.
2. Incidental expenses incurred for fees and tips given to porters, baggage carriers and hotel staff shall be
reimbursed up to General Service Administration (GSA) limit (currently at $5 per day). If the member
receives a full day’s per diem, no additional incidentals shall be provided, as this is already included in
the GSA daily rate.
3. Personal expenses (e.g. shoe shine, in-room entertainment, personal phone calls, traffic fines, etc.) shall
not be reimbursable.
4. If a personal side trip is planned, the City shall reimburse not more than the advance purchase economy
class airfare to and from the original destination. Any additional costs related to personal travel shall not
be reimbursed by the City.
5. If a companion accompanies a member, only the business cost incurred by the member shall be
reimbursed. All costs incurred in addition to the member’s costs shall not be reimbursed by the City.
Business Meeting Expenses
1. Prior to any business meeting, the legislative body shall approve any meal expense based on the
Federal Meal Rate or in excess. The itemized receipt shall include the amount of the expense, the
date and place of the expense, the business purpose, and who attended the business meeting.
2. Meals shall only be reimbursed for the cost(s) of the eligible item on the meal receipt. Overcharged
amounts shall not be reimbursed.
3. Meal reimbursement shall be submitted within 30 business days of the meeting.
PROCEDURE
Member shall comply with the following procedures:
1. Complete the Request for Travel Authorization for City staff and Finance Department with all
information regarding meeting, travel dates, travel plan, hotel information, estimated costs, and
justification for the event at least sixty days before registration for the meeting closes.
2. The relevant parties shall agendize the request as early as feasible for legislative body review.
3. Legislative body shall approve or deny the proposed travel expenses.
4. Submit requests for registration and any advances or prepaid items within the standard disbursement
time period.
5. Members are responsible for turning in all receipts to the Finance Division within 30 business days of
returning from travel. Only expenses approved prior to travel shall be reimbursed by the City.
6. Within 30 business days after the member’s return from a trip, a Statement of Travel Expenses (travel
and expense report), supported by the Approved Request for Travel Authorization Form, shall be filed
with the Finance Division complete with the proper signing authority.
7. All Statement of Travel Expenses shall include copies of documentation of previous prepayments or
advances made, including registration, airfare, hotel, training agenda, etc.
8. Following an event for which a reimbursement claim has or will be submitted, the official seeking
reimbursement shall briefly report on the event during the next regular meeting of the legislative body
and no more than 30 days after the claim has been fulfilled. If multiple officials attended, a joint report
shall be made. This report shall be made verbally, or provided as a written report to be included as
information in the agenda packet.
Finance Division shall comply with the following procedures:
1. Receives completed Statement of Travel Expenses with the Approved Request for Travel Authorization
Form from member.
2. Receives the required backup documentation: Meeting agenda, receipts for airfare, hotel, tax/transit,
map to and from if mileage is used, per diem rate of the travel destination from GSA website or meal
receipts with details if actual meal expenses is used.
3. Reviews requested prepayments, advances and reimbursements related to travel. Checks the budget for
consistency with budgeted funds.
4. Process Statement of Travel Expenses and provides payment for advances, prepayments or
reimbursements.
CITY COUNCIL POLICY NUMBER: 2019-03
EFFECTIVE: November 25, 2019
SUBJECT: Use and Expenditures of City Resources by Councilmembers
PURPOSE:
This policy provides guidance to City Councilmembers on the use and expenditure of City
resources, as well as the standards against which those expenditures will be measured. As used
herein, the term "City" shall mean the City of Redwood City, the Successor Agency of the
Redevelopment Agency of the City of Redwood City, and the Redwood City Public Financing
Authority. This administrative policy would satisfy the requirements of Government Code
sections 53232.2 and 53232.3 in the event such requirements could be constitutionally applied
to charter cities.
POLICY:
A.General
1.City equipment, supplies (including letterhead), titles, and staff time may only be used
for authorized City business.
2.Expenses incurred by Councilmembers in connection with the following types of
activities constitute authorized expenses for which annually-established professional
development funds may be used, as long as the other requirements of this policy are
met:
a.Communicating and/or meeting with representatives of regional, state, and
national government on City-adopted policy positions;
b.Attending educational seminars designed to improve skills and/or gain
knowledge relevant to their service as Councilmembers;
c.Participating in local, regional, state, and national organizations whose activities
affect the City's interest;
d.Attending activities which recognize service to the City including but not limited
to employee and volunteer appreciation celebrations;
e.Attending events hosted by or sponsored by the City;
f.Attending meetings that implement a City-approved strategy for attracting or
retaining businesses, which typically involve at least one staff member;
g.Attending events that benefit non-profit organizations that serve the Redwood
City community; and
Attachment E
h.Attending to such matters where the Councilmember is serving in an official
capacity, including but not limited to matters pending before a judicial, quasi
judicial, or administrative tribunal.
3.All reimbursement claims for travel and related expenses shall be submitted to the City
Clerk's office on Statement of Expenses Schedule A (attached) within 60 days and shall
be accompanied by sufficient supporting documentation, including original receipts,
copies of registration forms, and/or invoices.
B.Lodging Accommodations
1.If the lodging is in connection with a meeting, conference, or organized educational
activity, lodging costs may not exceed the maximum group rate published by the
conference or activity sponsor at the time of booking. If the group rate is not available,
Councilmembers shall use comparable lodging.
2.If any guest accompanies the Councilmember and such guest is not required by the City
to attend the meeting, conference, or organized educational activity, the City will pay
only for the Council member's lodging plus applicable taxes at a standard single rate.
C.Subsistence Allowance
1.The subsistence allowance as of the date this policy is adopted shall be based on the
formula used to calculate the federal rate and consistent with policies and practices that
govern staff expenses of this nature.
2.The allowance for Councilmembers leaving for a seminar after 12 noon but before 7:00
p.m. shall be based on the formula used to calculate federal rates and consistent with
policies and practices that govern staff expenses of this nature
D.Exceptions
1.All expenses that do not fall within the adopted travel reimbursement policy or the IRS
reimbursable rates shall be approved by the City Council before the expense is incurred.
E.Reporting
1.Councilmembers shall provide brief reports on meetings attended at the expense of the
City at the next regular council meeting.
NAME:
DEPARTMENT:
DATE BRKFST LUNCH
*Code for OTHER EXPENSES
A -Taxi, Bus fare, Car rental
B -Telephone, Fax
C -Parking fees, Bridge Tolls
D -Plane or train fare
E -Registration fees
F -Miscellaneous
Account Code:
Account Code:
Account Code:
Account Code:
CITY OF REDWOOD CITY
SCHEDULE A
STATEMENT OF EXPENSES
Attach all receipts where practical
VENDOR NO.:
VOUCHER NO.:
OTHER DAILY DINNER HOTEL OTHER CODE* TOTAL
-
-
-
-
-
-
-
-
-
-
-
-
Total -Schedule A
Total -Schedule B
Sub-Total
Less Cash Advance
TOTAL REIMBURSEMENT
Amount:
Amount:
Amount:
Amount:
TOTAL REIMBURSEMENT:
PURPOSE
---------------------------------
===========
I certify that this claim is a true record of expenses incurred on official business of the City of Redwood City
during the above period.
Date: Signature: -----------------------
Department Head Approval:
City Manager Approval:
Finance Department Audit:
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 1 of 8
PURPOSE
The purpose of this policy is to provide procedures for the authorization of travel
and payment of travel expenses for City employees attending conferences,
training, and meetings. The policy will ensure that all travel related expenses are reasonable and necessary for the conduct of City business.
For the purposes of this policy, City employees shall mean all full-time or part-
time exempt and non-exempt employees. Temporary or contract employees must
receive express authorization in advance from the Assistant City Manager or
designee for all travel related expenses.
Any exceptions to this policy must be approved by the Department Head and the
Assistant City Manager or designee.
PROCEDURE
A.Extended Travel
1)Authorization for Travel
Prior to the commitment or expenditure of any City funds for extended
travel (requiring an overnight stay or airfare), the employee shall obtain
approval for the event from a Department Head or Council Appointed
Officer (CAO). This authority cannot be delegated. The authorization forout-of-state extended travel must also be approved by the Assistant CityManager or designee.
No individual may authorize his/her own travel. Department Head travel
shall be approved by the City Manager or designee and CAO travel shall be
approved by the Assistant City Manager or designee.
A Pre-Travel Authorization form shall be used to request approval and to
document an estimate of total expenses (i.e., registration fees, lodging,
transportation, and meals). A copy of the official event brochure and/or
agenda of the event that describes the schedule of sessions, provided
transportation and meals, and other amenities of the event must be attached
to the form. IRS per diem rates shall be used for calculating estimated meal
expenditures.
Attachment F
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 2 of 8
The Pre-Travel Authorization form includes boxes that must be checked by
the employee and verified by the Department Head, CAO, Assistant City
Manager or designee, or City Manager or designee to indicate that:
Government rates have been requested for hotel and registration
Employee agrees to submit a Travel Expense Report within 30 days after return from the trip
Professional Development will be used to reimburse employee for the
travel or training (if applicable)
Department Head/CAO/Assistant City Manager/City Manager approval
indicates that:
Government rates for hotel and registration have been verified
The request complies with the City’s Travel Policy and Procedures
Applicability of using Professional Development funds has been
determined
The original approved Pre-Travel Authorization form, along with the
official event brochure and/or agenda of the event, should be maintained by
the department and submitted with the Travel Expense Report at the
appropriate time. 2) Travel Arrangements Departments are encouraged to make travel arrangements (registration fees, lodging reservations, air transportation, and rental cars) on the Internet, utilizing a procurement card for payment. A copy of the approved Pre-
Travel Authorization form should be attached to the monthly procurement
card activity log.
3) Reimbursable Travel Expenses
a) Registration Fee
Registration fees for those expenses indicated in the published event
materials. Government rates and/or any discounts offered for early
registration should be obtained whenever possible.
b) Lodging Expense
Travelers shall select single occupancy, standard, non-deluxe
accommodations and should stay at hotels offering economical
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 3 of 8
lodging rates. Travelers attending a conference or seminar are
encouraged to stay at conference hotels, which offer a negotiated
conference rate. When making reservations, travelers should request
government rates, if available. Traveling employees should carry
their City identification cards. The City shall not reimburse any cost related to the extension of a hotel stay beyond the time necessary to complete the event. An out-
of-state trip involving cross-country travel may require hotel
accommodations both before and after the conference or training.
Within California or adjoining states an extra night’s hotel stay
should not be necessary if flight arrangements can be made the same
day.
The use of hotels is restricted to cities located beyond 50 miles (one-
way) from the City of Palo Alto or the traveler’s residence
(whichever is shortest). For example, if the destination is
Sacramento and you live in Palo Alto (118 miles) or Oakland (81
miles), you would qualify for a hotel. However, if you live in
Vacaville (35 miles) or Lodi (36 miles) you would not qualify for a
hotel.
c) Transportation
Air Transportation Travelers shall fly economy coach class on the lowest cost flight available for the most direct route to the final destination, which could reasonably include scheduled layovers. Travelers are
encouraged to make air reservations as early as feasible to obtain the
greatest discount and to consider the use of alternate but nearby
airports to take advantage of the lowest fares. Extension of the trip
to cover a weekend stay to obtain a lower airfare does not entitle the
traveler to be reimbursed for the extra day's hotel costs or meal
expenses. Travelers may use City travel to qualify for frequent flyer
credits, but the selection of an airline for a given trip shall not be
made for the purpose of accumulating such credits. Travelers that
choose to use their personal frequent flyer miles for City business
shall not be reimbursed for the value of the tickets. If the airline
charges for all checked baggage, the City will cover the cost for one
checked bag only. Excess baggage charges are not reimbursable.
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 4 of 8
Rental Cars
Rental cars shall only be approved, if other ground transportation,
such as shuttles or taxis, is more expensive during the stay at the
destination. Only economy or compact car models may be rented,
unless the upgrade is provided by the rental agency at no cost. Rental car options such as GPS devices are not reimbursable. Because the City is self-insured, employees should decline any additional insurance offered by the rental company. Employees must also
decline any Fuel Purchase Options (which allow for prepayment of a
gas tank refill) and shall refuel prior to returning the rental car, if
additional charges apply for refueling. Use of a rental car, in lieu of a
private auto, to travel to and from an out-of-town event will be
reimbursed either at the current IRS mileage rate or the car rental
cost apportioned for the number of days used for City business,
whichever is less.
Private Automobiles
Employees may use private automobiles for personal or group
transportation on extended trips. Reimbursement shall be made at
the current IRS mileage rate. The distance to be reimbursed shall be
measured from the place of work and from the employee’s home,
and the calculated mileage reimbursement shall be based upon which
of the two distances is shorter. Mileage reimbursement shall not
exceed the cost of refundable round trip air transportation (economy
class) for a reservation made at least seven days in advance of the trip. City Pool Cars
City pool cars normally may not be used for transportation on
extended trips. Requests for use of City vehicles for this purpose
should be directed to the Fleet Manager, Equipment Management
Division, Public Works. For use of vehicles assigned to specific
divisions and/or individuals, refer to Vehicle Use Policy and
Procedures 4-1.
d) Meals
Effective April 27, 2015, the City will provide a per diem (“per
day”) allowance for meals and incidentals to employees who travel
overnight for official City business. Travelers will receive a flat rate
for meals and will not be required to submit receipts. If travelers use
a P-Card to pay for meals, it negates the per diem.
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 5 of 8
The per diem rate varies and is dependent on the destination of
travel. The rates for the various travel destinations are available on
the U.S. General Services Administration website
(http://www.gsa.gov/portal/content/104877) (these amounts are
subject to change every year). Each city has a dollar value for the full day depending on the relative cost of meals in that jurisdiction. When meals are provided as part of the cost of an event, that meal will be deducted from the full day per diem rate. Travelers will
receive 75% of the full day per diem amount for days requiring
transportation to and from the location (i.e. departure day and return
day) regardless of departure and arrival times. Meals provided on
days of travel shall be deducted at full-value.
Travelers are required to look up the per diem rates as part of the
pre-approval authorization process.
e) Incidental Expenses
Incidental expenses related to City business shall be reimbursed at
cost as supported by submitted receipts. Incidental expenses may
include hotel parking charges, Internet connection services, and
telephone charges.
The actual costs for parking will be reimbursed when approval to use
a personal vehicle or rental car is obtained in advance. Travelers should use the lowest cost alternative for parking within a reasonable area from the destination. Internet connection services purchased to conduct City business are reimbursable. Employees will be
reimbursed for telephone calls to City of Palo Alto offices. The hotel
bill should indicate any calls that are of a business nature.
Reimbursement for calls home is limited to one call per day of
reasonable length. Other charges on the hotel bill, such as pay-TV
movies, cleaning, laundry, room service charges (additional over
cost of meal) or charges for additional guests are not reimbursable.
4) Travel Expense Report
Within thirty business days after the employee's return from the trip, a
Travel Expense Report must be filed with the Accounting Division of ASD.
Employees are encouraged to complete the Travel Expense Report
electronically in Excel. Employees shall print and sign the Travel Expense
Report. When signing the Travel Expense Report, the employee certifies
that the expenses listed on the Report were incurred in conformance with
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 6 of 8
the Travel Policy and that the “amount due the employee” has not been
received from any other source. The original Pre-Travel Authorization
form must be attached to the Travel Expense Report. The filing of this
report is necessary whether or not reimbursement is requested in order to
document to the IRS that the travel expenses do not constitute miscellaneous income to the employee. If this report is not filed within the required thirty working days, no future travel requests will be processed for the individual until outstanding travel and expense claims are complete.
The Travel Expense Report must account for all expenses, including
expenses paid by the procurement card, and all expenses must be supported
by itemized original receipts or copies of electronic receipts. For air
transportation, the original airline ticket or flight confirmation printout
should be attached. It is not sufficient to provide Internet quotes or pre-stay
web confirmations for air travel or lodging. For expenses paid with the P-
Card, the original receipts must be attached to the P-Card statement and
copies of the receipts should be attached to the Travel Expense Report.
The Travel Expense Report must be approved by the Department
Head/CAO or designee. (Each department/office provides a list of
designated approvers to ASD on an annual basis). Department Head travel
shall be approved by the City Manager or designee and CAO travel shall be
approved by the Assistant City Manager or designee. Department
Head/CAO approval is required for any expenses that were not authorized
on the Pre-Travel Authorization form. For missing documentation, the traveler shall attach a written explanation detailing the expenditure and reason for the missing receipt, and obtain Department Head approval. If reimbursement is due to the employee, a check will be issued to the
employee using the Travel Expense Report (no separate claim voucher is
needed). If the reimbursement amount is $150 or less, the employee may
request reimbursement via petty cash.
B. Local One-Day Travel
Employees shall obtain verbal approval for one-day local travel (not requiring
airfare and/or an overnight stay) from his/her Department Head, Assistant
Department Head, Deputy Director, Division Head or designee prior to the
traveler’s departure. Designees must be management staff. A Pre-Travel
Authorization form is not required for local travel.
Typical reimbursable expenses for local travel include mileage, public
transportation, parking, bridge tolls, meeting or conference registration fees,
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 7 of 8
and meal expenses. Only expenditures supported by itemized receipts will be
reimbursed.
Travelers may be reimbursed for meal expenses. Itemized receipts for meals
must be maintained. The maximum reimbursement amount for meals shall be: $15.00 for breakfast, $16.00 for lunch, and $28.00 for dinner. Under no circumstances will expenses for alcoholic beverages be reimbursed by the City. Meal reimbursements for local conferences, meetings, or training conducted
between the hours of 8 a.m. and 5 p.m., will be limited to lunch. When meals
are provided as part of the cost of an event, travelers will not be reimbursed for
the actual expenses of these meals.
Local travel meal expenses that do not meet the IRS definition of “business
related” will be considered taxable income and added to the employee’s W-2.
For a meal to be considered non-taxable, it must be “directly related” and
“associated with” the active conduct of City business. To meet this definition,
business must be conducted during the meal period. Meal expenses associated
with training do not meet the IRS definition of a business related meal. Such
meals will be considered taxable income and added to the employee’s W-2.
For all meal expense reimbursements, the form should include an explanation
of why the meal was necessary for the conduct of City business.
C. Night Meeting Meals
Meals taken by management employees assigned to attend night meetings will be reimbursed for actual dinner expenses up to $20. Itemized receipts for meals must be maintained. Reimbursement should be requested on a Citywide Petty
Cash Reimbursement form. To obtain the form, refer to the City’s Petty Cash
Policy. The Petty Cash Reimbursement form must be accompanied by the
meeting agenda.
Night meeting meal reimbursements are considered taxable income and will be
added to the employee’s W-2.
D. SEIU Overtime Meals
Meals taken by SEIU employees working emergency and non-emergency
overtime will be reimbursed in accordance with the contract between the City
and SEIU, currently in the amount of $10 for breakfast, $15 for lunch, and $20
for dinner. No receipts are required. Reimbursement should be requested on a
Citywide Petty Cash Reimbursement form.
POLICY AND PROCEDURES 1-02/ASD Travel Arrangements and Expense Reimbursement
Revised: January 28, 2016
Page 8 of 8
E. Reimbursement for Personal Vehicle Use on City Business
City pool cars, assigned vehicles or public transportation should be used for
trips between City facilities, to local meetings/training, or other events outside
the City limits but within the Bay Area whenever possible. If a city vehicle or public transportation is not available or feasible, personal cars may be used and mileage will be reimbursed at the prevailing IRS rate for the distance between the employee’s home and the destination or work and the destination,
whichever is less. Mileage reimbursement requests shall include the number of
miles driven, the employee address, and the purpose of the trip.
Reimbursement requests that cover more than one date will be accepted on one
form if the trips are for the same purpose or meeting.
Recipients of an automobile expense allowance may not receive personal
vehicle mileage reimbursement, except in the case of business travel beyond
the Bay Area counties of Santa Clara, Alameda, Contra Costa, Solano, Napa,
Marin, San Francisco, San Mateo and Sonoma. In addition, CAO’s and
Department Heads who receive an automobile expense allowance in lieu of
exclusive use of a City automobile may not use City pool cars for business use
except on an emergency basis, which is documented by memo to the City
Manager.
NOTE: Questions and/or clarification of this policy should be directed to the
Administrative Services Department.
Policy & Services Committee
Staff Report
From: Chantal Gaines, Deputy City Manager
Meeting Date: February 13, 2024
Report #: 2309-2058
TITLE
City Council Referral to Discuss and Recommend City Council Procedures and Protocols on:
Council Discretionary Expenditures – Consideration of the establishment of appropriate
parameters for Council discretionary expenditures and whether to allocate $2,000 annually
from the City Council contingency fund for each Council member to decide its purpose.
RECOMMENDATION
Staff recommends that the Policy and Services Committee discuss the referral from
the City Council related to City Council Discretionary Expenditures and make a
recommendation to the City Council for inclusion in the City Council Procedures and
Protocols Handbook.
BACKGROUND
The City Council discussed the City Council Procedures and Protocols Handbook on January 30
and March 20, 2023 and adopted the most recent version on April 24, 2023. The City Council
referred a few discussion topics to the Policy and Services Committee during these discussions.
The Committee made progress on these referrals and have sent recommendations to the City
Council for consideration on all but one of the referrals (City Council discussion planned for
February 5, 2024). Referral #7 is the remaining referral and is analyzed within this report. All
referrals are listed below:
1. Procedures Section 1.1: Annual Organization of City Council.
2. Procedures Section 5.1a(4): Video Participation for Public Comment.
3. Procedures Section 8.2: Related to Enforcement and Censure.
4. Protocols Section 2.2: Refrain from Lobbying Board and Commission Members.
5. Protocols Section 2.8: The Role of Council Liaison to Boards or Commissions.
6. Protocols Section 4: International Travel.
7. Protocols Section 4.1: Miscellaneous Expenditures. Council referral for the committee to
discuss the establishment of appropriate parameters for Council discretionary
expenditures and whether to allocate $2,000 annually from the Council contingency
fund for each Council member to decide its purpose.
Attachment G
ANALYSIS
In 2023, the City Council referred to Policy and Services discussion of “the establishment of
appropriate parameters for Council discretionary expenditures and whether to allocate $2,000
annually from the Council contingency fund for each Council member to decide its purpose.”
This referral includes several sub-questions:
1. As a policy matter, does the City Council wish to allocate some amount of City funds to
individual Council Members to spend at their discretion, within limits defined by law and
City Council policy?
2. If so, what is the appropriate amount?
3. What purpose or purposes does the City Council wish to define for these expenditures?
4. In light of the identified purpose or purposes, what procedures are appropriate.
As a first step in considering these issues, this memorandum outlines the relevant state and
federal law requirements that will apply to any program of this type. This memorandum does
not explore the pros and cons of adopting a program to delegate spending discretion to
individual City Council members. It also does not discuss in detail the various purposes that the
City Council could approve for expenditures (beyond identifying purposes that are unlawful
under state or federal law), except to list a few potential options for illustration and
consideration if the Committee chooses:
•Small grants to community organizations
•Reimbursement for expenses related to official duties
•Funding for community events
•Discretionary dollars to allocate during the budget process
There may be other permissible uses that the Committee wishes to discuss. Note that the
purposes that the Committee and City Council choose may lead to additional legal implications
and considerations that will need to be analyzed. For example, purchases of good or services
are likely subject to procurement and/or operational limitations.
Written Expenditure Policy. The City Council should adopt a comprehensive written policy that
identifies permissible purposes for expending City funds, identifies impermissible expenditures
and other limitations, and establishes clear procedures and documentation requirements.
At a minimum, the policy should identify key legal limitations, such as the following:
•City funds may not be used for personal activities
•City funds may not be used for partisan political activities, including campaigning for
office or supporting or opposing ballot measures or candidates
•City funds may not be used to fund specific religious purposes
•Expenditures must comply with laws prohibiting conflicts of interest
•Expenditures must comply with limitations on “mass mailings”
The City Council policy should be flexible enough to address any other legal issues that may
arise, depending on the specific nature and scope of the policy implemented.
The policy also should specify a review process and documentation that will be required.
Review and documentation protect the City and each Council member by demonstrating
compliance with legal requirements and City Council policy.
Finally, note that City expenditure records are public records and are subject to disclosure on
request.
General Legal Restrictions. The following are state and federal law prohibitions on certain types
of expenditures of public funds.
Prohibition on Use of City Funds for Personal or Partisan Political Purposes. Public
funds are designated exclusively for public purposes. While the definition of a public
purpose is broad, there are categories of expenditure that clearly do not qualify. It is
unlawful to use public resources for personal or political purposes. Cal. Govt Code §
8314. This includes using public funds for a personal purpose, such as an official’s own
personal purposes or the purposes of family or friends. It also includes partisan political
purposes, including the official’s own campaign activities or support or opposition to
ballot measures or other political campaigns. Staff recommends that the expenditure
policy integrate this prohibition and also include clear examples to highlight what
constitutes personal or political use.
Note that some well-intended City expenditures that do not directly and immediately
benefit local residents—for example, donations to other cities in response to disasters—
can generate questions about compliance with the public purpose mandate. These
concerns are sometimes described as “gift of public funds.“ When these issues arise,
California courts generally defer to the wisdom of city councils to determine the
appropriateness and public nature of expenditures. For example, courts have accepted
council findings that disaster donations support a broad community of mutual aid that
benefits local residents in the long run. If the City Council wishes to authorize individual
Council members to make extra-jurisdictional expenditures, it should define the scope
and public purpose rationale in its written policy.
Restrictions on Use of City Funds for Religious Purposes. The federal and California
Constitutions prohibit use of public funds for the purpose religious practice. U.S. Const.
amend 1; Cal. Const. Art. XVI, Sect. 6. Recent Supreme Court rulings, however, have held
that religious institutions may (and in some cases must) be allowed access to public
funds when these public funds are made available to other private organizations for the
same purpose. Carson v. Makin (2022) 596 U.S. 767. City Council’s policy should identify
both the restriction on the use of City funds for religious purposes and the requirement
not to discriminate against religious institutions and should encourage consultation with
the Attorneys Office whenever these issues arise.
Avoiding Conflicts of Interest. The Political Reform Act, Cal. Govt Code §§ 81000 et seq.
(the Act), prohibits City officials from directing funds in ways that could result in
financial benefits to themselves, their family members, or other entities in which they
have financial interests as defined by the Act. Under the Act, financial interests include
real property, ownership and investment in business entities, sources of income, gifts,
and personal financial holdings. Cal. Code Regs. 18700 et seq. City Council's expenditure
policy should acknowledge the conflict-of-interest provisions of the Act and incorporate
guidelines to ensure adherence to these legal requirements.
Adhering to Mass Mailing Rules. The Political Reform Act also prohibits the use of
public funds for “mass mailings.” Under the Act, a “mass mailing” is any tangible item,
like a newsletter or brochure, in quantities of 200 or more, featuring an elected official
and financed with public funds. These mailings may not be sent to residences, places of
employment, businesses, or post office boxes. (The restriction does not apply to
electronic communications.) If the City Council’s expenditure policy permits the use of
City funds for distributing such materials to residents, it will be important to include a
provision for staff review prior to distribution to ensure adherence to the mass mailing
restriction.
Additional Legal Restrictions that May Apply to Certain Types of Expenditures. Additional
legal procedures or restrictions might apply, depending on the type of expenditures that the
City Council authorizes. Without knowing what the City Council is interested in, we cannot yet
provide a complete analysis. We do know however, that the following types of expenditures
raise particular issues.
Reimbursement for Expenses Related to Official Duties. State law authorizes
expenditure of local funds to reimburse city council members for “actual and necessary
expenses incurred in the performance of official duties.” Cal. Govt. Code § 53232.2.
State law requires a written policy specifying the types of occurrences that qualify for
reimbursement, and establishes other procedural requirements for reimbursement
rates, documentation (receipts), and reports on uses of the funds. Govt. Code § 53232.3.
Amounts paid consistent with these procedures are excluded from salary that would
otherwise be subject to the maximums under state law and the Palo Alto Charter. Govt.
Code § 36516(e). If the City Council decides to authorize funds to be used for
reimbursement, it will be important to comply with all of the requirements of Sections
53232.2 and 53232.3, so that these funds are not counted towards salary. This is
because the City Council has directed that salary be increased to the state-law limit,
leaving no room for additional funds should they be classified as salary.
Grants to Community Organizations or Funding for Community Events. When the City
makes grants to community organizations or funds community events, staff vets
recipients and uses agreement templates—appropriate to the type and size of the grant
or event—to document expectations and protect the City and taxpayers in the event of
unexpected negative occurrences. In the case of very small neighborhood grants, the
agreements are short and relatively simple, and focused on the most important issues
(e.g., non-discrimination and appropriate insurance). If the City Council is interested in
authorizing individual the City Council members to make grants or fund events,
consideration should be given to who will have contract authority, whether vetting and
documentation will be required, and what that will look like; conversely, if none is
required, the City Council should understand that there may be risks assumed by the
City as a result.
FISCAL/RESOURCE IMPACT
The City Council contingency fund total allocation is determined each year through the budget
process and this program proposes to dedicate some of those funds, thus this is not new
funding. However, depending on the program parameters discussed, the staff time resources to
administer the program would need to be further assessed.