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HomeMy WebLinkAboutAgenda: Study Session B: City Council ExpensesDATE: June 25, 2010 TO: Mayor and City Council FROM: Don Penman, City Manager SUBJECT: CITY COUNCIL EXPENSES Continued from July 6 meeting Study Session Item b. MEMORANDUM Office of the City Manager As I indicated to the City Council by memo during the budget process, the Council exceeded your Meetings line item budget for FY 2009 -2010. The primary reasons were that the Council attends lots of local events and that we typically have a study and /or closed session before each Council meeting where we bring in food since some of you come directly from work and do not have the opportunity to eat before the meeting, and also some of us on staff don't take the time for dinner before the study /closed session begins. Actual travel to conferences and meetings outside the city by Council Members are fairly minimal, in particular compared to many other cities. Typically Council members might attend one conference per year, usually either the ICA or League of Cities. Only occasionally does a councilmember attend something else; the only example I can think of is when the Mayor would go to Washington DC for a lobbying trip on a grant program we are pursuing, however this hasn't occurred in the last few years due to the cutback in funding opportunities from the Federal government and that trip is for a very specific purpose. My point here is that there is not a problem with Council members traveling frequently causing the budget to be exceeded. First let me say that I think we should continue to bring in food for study sessions unless the session starts at 6:30 pm. If it starts at 6:00 pm we should still bring something in because there is not enough time to grab some dinner before the meeting. Additionally while the cost can run about $100 or sometime more, we try and keep the costs down. Costs have risen for attendance at the multitude of events conducted by outside organizations and the City added spouse reimbursement a few years ago. Additionally some events such as the Crystal Ball have increased in costs. In the Mayor and City Council June 25, 2010 Page 2 past the City has paid for events sponsored by the Red Cross, Arcadia Chinese Association, School District, Methodist Hospital, and Chamber of Commerce. I think all of these are legitimate functions and there is a public purpose to attend on behalf of the City, though some tend to be more of a fundraising nature. There is one area that I feel compelled to bring to the City Councils attention. As noted about a few years ago the City Council formally changed the policy (in the fall of 2006 — formally in 2007) to provide reimbursement for the spouse (and I presume a guest if there was an unmarried council member) for attendance at an event. Specifically the language in the policy states, "For major community events, the City may purchase a ticket for the spouse of a Council Member or Official if said attendance at the event by the spouse serves a public purpose such as joining the Official in fostering ties with the community. Examples of functions covered by this section include the Methodist Hospital Crystal Ball, the Chamber of Commerce Installation Dinner and the Annual Taste of Arcadia event, Independent Cities Association events, employee association functions and Arcadia Red Cross activities ". The City Attorney has opined that certain spouse expenses (pursuant to the language above) is eligible for reimbursement, however I feel compelled to point out that the State Attorney General and LA County District Attorney have a different opinion, that spouse expenses are not eligible for reimbursement. I believe that many other cities have policies similar to ours in terms of spouse reimbursement of expenses; however we have not conducted a survey. There is one other area you may want to consider regarding expenses. Car travel on City business is eligible for reimbursement. The City pays a per mile rate consistent with the IRS approved rate. Council Members rarely seek reimbursement unless it involves a substantial amount of miles, typically in conjunction with traveling to a conference. There was a recent decision that allows the City to provide a mileage allowance for Council Members for use of their personal vehicle on City business. You could authorize an allowance and this allowance would be shown as income on a W -2 and would be taxable. In conclusion I think there are three areas that the Council may want to provide some direction. 1. Does the City Council want to amend your policy regarding the reimbursement of spouse expenses for attendance at certain events? 2. Does the City Council want to change the way in which you budget costs for conferences and attendance? For example you could allocate a specific amount to each Council member to expend for eligible costs and Mayor and City Council June 25, 2010 Page 3 that Member would have the discretion to utilize that budgeted amount for eligible expenses but stay within their budgeted amount? Also an added amount could be available for the Mayor since he is often invited to represent the City at certain events. 3. Does the City Council want to institute a mileage reimbursement allowance for Council members? I am scheduling this discussion for Study Session for July 6; though we also have a meet and confer closed session scheduled. If the closed session takes the full hour or close to it and there is not time to have a discussion on this item, there is no urgency and we can reschedule it.