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HomeMy WebLinkAboutOCSD 06-09 (REPEALED)RESOLUTION NO. OCSD 06-09 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT, AND MEETING ATTENDANCE AND COMPENSATION, AND REPEALING RESOLUTION NO. OCSD 04-16 WHEREAS, the District, by previously adopted Ordinance Nos. OCSD-14 and OCSD-23, has established Board of Directors' compensation for meeting attendance; and, WHEREAS, the Board of Directors desires to revise the policy previously adopted pursuant to Resolution No. 04-16 to comply with all of the requirements in the above-described new statutes. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and meeting attendance and Compensation, set forth on Exhibit "A", attached hereto and incorporated herein by reference. Section 2: Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 04-16 is hereby rescinded. In addition, any prior resolutions and/or policies established by the Board of Directors that are in conflict with the policy set forth in Attachment "A" shall be deemed rescinded to the extent of such conflict. , l\ ·'; .,: >· (, PASSED AND ADOPTED at a regular meeting held April~26~ 2006 .. ; '.r·._\ :... .. ' -• (~. ~. J Board Seer 1 REPEALED BY OCSD 06-11 EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION Article I. Business and Travel Expense Reimbursement It is the District's policy to reimburse Board Members for authorized business and travel expenses in accordance with the procedures of this Policy. This Reimbursement Plan is intended to be an "accountable plan" under the applicable requirements of the Internal Revenue Code and Treasury Regulations. The District, through the Chair of the Board, will authorize attendance at conferences, seminars, meetings and travel, but such expenses related thereto will only be approved to the extent they are necessary to further the accomplishment of District goals and objectives. This Policy applies to all regular and alternate District Board Members authorized to represent the District in business or travel activities. At all times, District representatives serve the public and must do so within the ethical and business performance standards expected of a public agency. Prudent judgment and full compliance with District policies is required. Failure to use discretion in the incurring of business expenses may result in the loss of discretionary travel privileges. Sufficient funds must be included in the current Fiscal Year's operating or capital improvement budgets for all business and travel expenses to be paid or reimbursed under this Policy. Non-compliance with the Policy or falsification of reports or documentary evidence may result in corrective action, including criminal prosecution. Section 1 ~ Authorized Expenses. A. The following types of occurrences qualify Board Members to receive reimbursement for expenses incurred in the performance of official duties relating to travel, meals, lodging, and other actual and necessary expenses that constitute authorized expenses, provide the requirements of this policy are met: i. Communicating with representatives of regional, state and national government on issues or matters affecting the District or on District- adopted policy or political positions; 2 ii. Attending conferences and/or educational seminars designed to improve the Board Members' expertise and information levels, including, but not limited to, ethics training required pursuant to Government Code Section 53234; iii. Participating in regional, state and national organizations whose activities affect the District's interests; iv. Attending District events; v. Implementing a District-approved strategy for District- related activities I business; and vi. Meetings such as those listed above for which compensation is expressly authorized under this policy. · B. Unless otherwise specifically provided for herein, reimbursement for travel, meals, lodging, and other actual and necessary business expenses shall be at the rates presently in effect as established in Internal Revenue Service Publication 463 or any successor publication. Expenses not covered by this policy, or expenses in excess of the reimbursable rates set forth in this policy, are not reimbursable unless approved by the District Board of Directors in a public meeting before the expense is incurred. Section 2: Terms and Definitions. A. "Accountable Plan" shall mean the Internal Revenue Service Publication No. 463 for Travel, Entertainment, Gift and Car Expenses, or any successor publication. Expenses must have a business connection. Expenses must be adequately documented and include evidence such as receipts, canceled checks, invoices, or credit card statements to support the expenses, and must be submitted within sixty (60) days after they were paid or incurred. Any excess reimbursement must be returned within sixty (60) days. B. "Approval by the Board" shall mean Board of Directors approval at a regularly-scheduled Board Meeting with a quorum present and acting. C. "Alternate Board Member" shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. When the Board Member is absent, the Alternate Board Member becomes the Board Member, and everything in this Policy applies. The Alternate Board Member and the Board Member cannot both be compensated for the same event without prior approval by the Board Chair. 3 D. "Board Chair" shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. E. "Board Member" shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. F. "Committee Member" shall mean any Member of the Board of Directors, appointed to a Standing or Ad Hoc Committee, established by an action of the Board or Board Chair. G. "Days Service Rendered" shall mean attendance as described in Article II, Section 13, below. H. "Director" shall mean a Member of the District's Board of Directors. I. "Incidentals" shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. K. "Travel Expenses" shall mean transportation, lodging, meals, and incidentals expenses associated with attending a seminar, conference, or meeting requiring an overnight stay. L. "Travel Liaison" shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. Section 3: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair can approve or deny requests for travel or business activities and reimbursements for Board and Committee Members. B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. 4 C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all unreconciled expenses regarding travel matters. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. Section 4: Travel Liaison. The Travel Liaison shall arrange all travel, lodging, accommodations, and seminar/conference registrations for the Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case-by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. Section 5: Designated Travel Agency. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 6: Seminars. Conferences. and Meetings. A. Attendance at seminars, conferences, and meetings must be approved in advance by the Board Chair, except when specifically pre-authorized by this Policy. B. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry, and may be asked to, or may desire to, give presentations or otherwise represent the District at such events. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the full Board of Directors. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to submit a request to act as District Representative to the Board, the Board Chair has the authority to approve such a request in advance; this approval would then be subsequently submitted for ratification at the next regularly scheduled Board meeting. C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an Officer of the Association. 5 D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Free, local seminars must also be authorized in advance in order to be considered for approval of Director compensation. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States will not be approved except by vote of the District's Board of Directors' Steering Committee. Section 7: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. 6 G Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffer-driven limousines is not allowed while conducting District business. I. When using ground transportation other than personally- owned vehicles, Directors shall use government and group rates offered by the provider of transportation services when available. Section 8: Air Transportation. A. Air transportation must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air transportation should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. C. Government and group rates for airline travel shall be used when available. Section 9: Lodging. A. Government and group rates offered by a provider of lodging services shall be used when available. B. When travel is to a conference or organized educational activity, lodging costs shall not exceed the maximum group published by the conference or activity sponsor. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference group rate, other lodging accommodations may also be arranged if the cost is less than or equal to the conference group rate. No lodging within sixty (60) miles of the District's Administrative Offices or the Director's residence, whichever is less, will be reimbursed. 7 Section 10: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. Meals for Directors' guests will be reimbursed only if they have a legitimate business relationship with the District. A. Reimbursement Rates. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts indicated below. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast Lunch Dinner Snacks $15.00 $20.00 $25.00 $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $70 per travel day under the Receipt Method. Receipts must be a detailed receipt from the restaurant for actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. Credit card receipts may be accepted, subject to Board Chair approval if itemized, if detailed meal receipts are not provided by the restaurant. B. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. iii. Meals provided to a spouse or guest. iv. Alcoholic beverages consumed by a Director or others. 8 Section 11: Extended Travel and/or Travel with Family Members. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days will be considered the same as a day's service rendered; provided, approval is obtained from the Board Chair in advance. Section 12: Requests for Reimbursement. A. Requests for reimbursement shall be submitted to the District Controller not later than sixty (60) days after payment by the individual and shall be submitted on forms provided by the District. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair . All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to in-room movies, service bar, etc. will not be reimbursed. B. All expense reports shall include detailed receipts (except for meals to be paid pursuant to Section 9.B. above) and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. Section 13: Brief Reports to Board. At the next regular meeting of the Board of Directors following the event for which expenses are incurred, Directors shall briefly report, orally or in writing, on any meetings attended at District expense. If multiple Directors attended the meeting at District expense, a joint report may be made to the Board of Directors. Article II. Meeting Attendance and Compensation Section 12: Directors shall be paid a stipend as compensation, at the rate determined by the Board of Directors, and adopted by Ordinance No. OCSD-14 as amended, for attendance at Meetings, as defined below, and for each Day's Service Rendered as a Member of the Board. "Maximum Meetings Allowed Per Month" shall mean for the Board Chair, ten (10) meetings, or ten (10) days' service rendered per month; for all other Directors, six (6) meetings or six (6) days' service rendered per month. 9 "Meetings" shall mean all regularly convened Board of Directors Meetings, Standing Committee Meetings, Ad Hoc Committee Meetings, and other Meetings called by the Board Chair. Also included are specific industry conferences and business meetings of a recurring nature, such as the California Association of Sanitation Agencies and the Association of Metropolitan Sewerage Agencies, designated by the Board Chair. Meetings not sanctioned by the Board Chair are not considered business of the District. Section 13: Directors shall receive a stipend as compensation, without further action or authorization of the Chair or the Board of Directors for attendance at the following: Board of Directors meetings; Standing Committee and Ad Hoc Committee meetings, of which the Director is a duly appointed member; meetings, conferences and committee meetings of CASA and AMSA; meetings of other governmental agencies, at which the District has an official delegate. Section 14: Each Day's Service Rendered as a Member of the District's Board of Directors, shall be deemed to include, but not be limited to: A. Attendance at any Meeting of a Committee of which the Director is not a member, when expressly invited to attend said Committee Meeting by the Chair of the Board of Directors. B. Attendance at conferences with State and/or Federal Legislators regarding District business, when approved by action of the Board of Directors. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by action of the Board of Directors, or when designated by the General Manager, with the concurrence of the Chair, in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events. iii. Meetings with other elected officials or their employees, which do not include District Staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the 10 interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. v. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or Association of Metropolitan Sewerage Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. viii. Ethics training required by Government Code sections 53234 -53235.5. Section 15: Non Compensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: A. Nonprofit organization meetings. B. Nonprofit organization events. C. District-sponsored employee events, including but not limited to the annual holiday luncheon, employee picnic, or retirement events. D. E. 14(C)(i) above. F. G. consultants. Social or ceremonial events not pre-authorized by the Board. Service club meetings other than those included in Section Parades, festivals, holiday events, or retirement dinners. Meetings with existing or potential contractors, vendors, or H. Meetings of partisan political organizations. Section 16: No Director shall receive compensation for attendance at any meeting, such as Committee Meetings, which are scheduled immediately preceding, immediately succeeding, or concurrent with a regularly-scheduled District Board Meeting. 11 Section 17: No Alternate Director shall receive compensation for attendance at any meeting unless serving in the absence of the regular, Active Director. The Policy was duly adopted, by action of the Board of Directors, on ______ , 2006 and shall be effective upon its adoption. 12