§ 2.04.080. Policy for travel and expense reimbursement.

A.

Purpose. The purpose of this policy is to provide standards regarding reimbursement of director expenses for activities related to district business, and to ensure district stewardship of public resources.

B.

General.

1.

This policy applies to all directors and is intended to result in no personal gain or loss to a director.

2.

A director must follow the established procedures in order to receive reimbursement.

C.

Authorized Activities. District funds, equipment, supplies, titles, and staff time must only be used for authorized district business. Expenses incurred in connection with the following types of activities generally constitute authorized expenses, as long as the other requirements of this policy are met:

1.

Communicating with representatives of regional, state and national government on District adopted policy positions;

2.

Attending educational seminars designed to improve officials' skill and information levels;

3.

Participating in regional, state and national organizations whose activities affect the district's interests;

4.

Recognizing service to the district (for example, thanking a longtime employee with a retirement gift or celebration of nominal value and cost).

D.

Unauthorized Expenses. The district will not reimburse board members for expenses incurred outside the scope of the board member's duties including, for example, and not limiting, the following:

1.

The personal portion of any trip. For example, if a board member elects to travel to an event in advance or stay longer on personal business, the district need only reimburse the board member for roundtrip travel costs and costs incurred during the event's duration;

2.

Political or charitable contributions or events;

3.

Family expenses, including partner's expenses when accompanying a board member on district-related business, as well as children- or pet-related expenses;

4.

Entertainment expenses, including theater, movies (in-room or at the theater), sporting events (including gym, massage and/or golf related expenses), or other cultural events;

5.

Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and

6.

Personal losses incurred while on district business.

7.

Expenses for which board members receive reimbursement from another agency are not reimbursable.

8.

Any questions regarding the propriety of a particular expense should be resolved by the district board of directors before the expense is incurred.

E.

Hotels. Lodging expenses will be reimbursed when travel on official district business requires an overnight stay.

1.

If overnight stay is required when traveling for district business; a hotel may be obtained for overnight accommodations with the pre-approval of the board of directors.

2.

Lodging expenses will be reimbursed only at the single-occupancy rate for rooms.

3.

Conferences/meetings. If lodging is associated with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking.

4.

Other lodging. Travelers must request government rates, when available. Lodging rates that are equal to or less than government rates are presumed to be reasonable and hence reimbursable for purposes of this policy. In the event government rates are not available at a given time or in a given area, lodging rates that do not exceed the U.S. General Services Administration (GSA) guidelines for maximum lodging rates per diem for a given area are presumed reasonable and hence reimbursable.

5.

The district will not provide reimbursement for expenses such as, but not limited to, dry cleaning, in-room movies, and damages to hotel property.

F.

Meals.

1.

For meals associated with district business inside or outside of San Benito County or where an overnight stay is required, a board member may claim expenses not to the exceed the following, exclusive of gratuities and taxes:

a.

Breakfast: Twelve dollars ($12.00).

b.

Lunch: Sixteen dollars ($16.00).

c.

Dinner: Thirty dollars ($30.00).

Gratuities, not to exceed twenty (20) percent, and sales taxes may be added to the expense claim.

2.

The district will not provide reimbursement for alcohol or tobacco products, or items containing alcohol or tobacco.

G.

Transportation. District board members must generally use the most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirement, using the most direct and time-efficient route. Government and group rates must be used when available.

1.

Automobile mileage is reimbursed at Internal Revenue Service rates presently in effect. These rates are designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are also reimbursable.

2.

Only travel authorized by the board of directors for district business outside of San Benito County is authorized for reimbursement.

3.

A board member may leave from his/her home for district business. However, the district will not reimburse mileage that exceeds mileage from the district to the destination point.

H.

Cash Advance. From time to time, it may be necessary for a district board member to request a cash advance to cover anticipated expenses when traveling or doing business on the district's behalf. Such requests for advance should be submitted to the district manager fourteen (14) days before the need for the advance with the following information:

1.

The purpose of the expenditure(s);

2.

The benefits of such expenditure to the district;

3.

The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs, and transportation expenses); and

4.

The dates of the expenditure(s).

Any unused advance must be returned to the district manager within two business days of the board member's return, along with an expense report and receipts documenting how the advance was used in compliance with this policy.

I.

Expense Report. All cash advance expenditures, credit card expenses and expense reimbursement must be submitted on an expense report form provided by the district.

1.

Expense reports must document that the expense in question met the requirements of this policy.

2.

Board members must submit their expense report within thirty (30) days after an expense is incurred, accompanied by receipts documenting each expense. Restaurant receipts, in additional to any credit card receipts, are also part of the necessary documentation.

3.

Inability to provide such documentations in a timely fashion may result in the expense being borne by the board member.

4.

All expenses are subject to verification that they comply with this policy.

J.

Reports to Board of Directors. At the board of director's meeting following an activity, each board member must briefly report on meeting attended at district expense.

K.

Compliance with Laws. Some expenditures may be subject to reporting under the Political Reform Act and other laws. All agency expenditures are public records subject to disclosure under the California Public Records Act.

L.

Violation of this Policy. Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following:

1.

Loss of reimbursement privileges;

2.

A demand for restitution to the district;

3.

The district's reporting the expenses as income the board member to state and federal tax authorities;

4.

Civil penalties of up to one thousand dollars ($1,000.00) per day and three (3) times the value of the resources used; and

5.

Prosecution for misuse of public resources.

(Res. No. 2010-01, §§ 1—12, 1-20-2010; Res. No. 2012-03, § 1, 2-29-2012)