BOARD MEETING DATE: March 3, 2006
AGENDA NO. 9

Amend Compensation and Reimbursement Policy for Board Members to Comply with Limitations in AB 1234.

SYNPOSIS:

New legislation requires amending the AQMD’s written policy for compensating and reimbursing Board Member expenses. To meet state law requirements, the following changes are required: specifying additional activities triggering compensation; removing a catch-all provision allowing the Board Chair to approve compensation for activities not specifically called out in the policy; requiring use of government and group rates, when available; requiring the Board to approve reimbursements exceeding the rates set forth in the reimbursement policy; requiring Board Members to present a brief report on the meetings they have attended at AQMD expense; and requiring receipts to document all reimbursable expenses.

COMMITTEE:

Administrative, February 10, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

Adopt amendments to the Administrative Code as described in Exhibit A

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AB 1234, signed into law on October 7, 2005, requires that local governments adopt written policies for compensation and reimbursement of members of their governing bodies. AB 1234 also specifies certain requirements for the policies. The AQMD Administrative Code contains existing Board-adopted compensation and reimbursement policies. AB 1234, however, requires changes to the policies. An underline/strike-out version of the policies showing the proposed changes to the Administrative Code is attached as Exhibit A.

Proposal

The proposed changes to the Administrative Code are the following:

• The AQMD’s compensation policy specifies activities that trigger Board Member compensation. The policy also includes a catch-all provision providing that the Board Chair may approve compensation for Board Member activities not specifically described in the policy. Under the new law, the catch-all provision is not allowed. Accordingly, the revised policy (1) adds activities triggering Board Member compensation—meeting with Board Assistants and attending conferences and meetings—and (2) deletes the catch-all provision.
   
• Under AB 1234 the reimbursement policy must require Board Members to use government and group rates for lodging and transportation, when available.
   
• The reimbursement policy currently authorizes the Board Chair to approve payments exceeding the rates provided in the policy. Under the new law, only the Board is authorized to make these approvals.
   
• Under AB 1234 the reimbursement policy must require Board Members to provide a brief report on meetings attended at AQMD expense at the Board’s next regular meeting. Travel reports are only required when a Board Member receives expense reimbursement. They are not required when a Board Member only receives the compensation prescribed by the Health & Safety Code – currently $100 a day – for attending an event.
   
• Under AB 1234 the reimbursement policy must require receipts documenting each expense.
   
• Under AB 1234 the reimbursement policy must require that receipts are submitted in a reasonable time (120 days), as determined by the Board.

The proposed changes also change the reimbursement policy for AQMD staff.

Fiscal Impacts

None.

Attachment(s)
Exhibit A

Attachment A

Section 111 – AQMD Board Members’ Expenses

1.   INTRODUCTION.  Health & Safety Code Section 40426 provides that:  “Each member of the south coast district board shall receive compensation of one hundred dollars ($100) for each day, or portion thereof, but not to exceed one thousand dollars ($1,000) per month, while attending meetings of the south coast district board or any committee thereof, or upon authorization of the south coast district board, while on official business of the south coast district, and the actual and necessary expenses incurred in performing the member’s official duties.”

2.   COMPENSATION.  AQMD Board members shall be compensated as follows:

1. For each meeting of the AQMD Board or a committee of the Board to which the member is appointed, $100 per day or portion thereof shall be paid.  Committee meetings attended in person or via teleconferencing qualify a Board member for the compensation.
    

2. While on official business of the South Coast AQMD, $100 per day or portion thereof shall be paid.  Official business includes, but is not limited to:

(1)          Scheduled meetings with the Executive Officer, AQMD staff, Board Assistants, public officials, staff at public agencies, other Board Members, members of the public regarding any pending or proposed matter within the AQMD's purview or with an air quality related group.  An air quality related group is one that has a primary purpose, participation in dialogue regarding air quality policy. 

(2)     Tours of facilities within the AQMD,  participation in radio, television, newspaper, or other mass media primarily concerning AQMD air quality issues, or presentation of an air-quality related speech.

(3)     Meetings or conferences on air pollution-related matters, when attendance at the meetings or conferences is approved by the Board Chair. 

c.   When conducting all other official business of the AQMD requires requiring out-of-Basin travel not referenced in (a) or (b) above, a Board member must obtain advance approval by the AQMD Board or advance written approval by its Chair in order to qualify for the $100-per-day compensation.  In the interests of equity, up to $500 per Board member per fiscal year may be approved by the AQMD Board or by the Chair if, through oversight or in the event of unanticipated travel, a Board member does not obtain advance approval.  Such approval by the Chair shall be reported to the next regular meeting of the Governing Board as part of the monthly travel report.  Examples of official business for which approval is required include, but are not limited to: 

(1)     Meetings taking place outside of the geographical limits of the four counties that make up the AQMD. 

(2)     The travel day immediately preceding and immediately following the meetings specified in (c)(1) above. 

d.   Total compensation to a single Board member pursuant to subparagraphs 2.a., 2.b., and 2.c. shall not exceed the limits set forth in state law. 

3.   EXPENSES.  Each member of the AQMD Board shall be entitled to the actual and necessary expenses incurred in performing the member's official duties:

a.   The actual cost of transportation when by public carrier. 

b.   Mileage at the rates specified in Section 110 of the Administrative Code. 

c.   Actual reasonable and necessary cost of meals as evidenced by receipts; without receipts, up to $25.00 per meal. 

d.   Actual and necessary expenses associated with trips taken outside of the geographical limits of the four counties which make up the AQMD while on official business of the AQMD, when such trips are requested or approved in advance by action of the AQMD Board or are approved in advance in writing by its Chair. In the interests of equity, expenses, subject to the total dollar limit specified in Section 2.c., may be approved by the AQMD Board or by the Chair if, through oversight or in the event of unanticipated travel, a Board member does not obtain advance approval.  Such approval by the Chair shall be reported to the next regular meeting of the Governing Board as part of the monthly travel report. 

e.   Rules for Board member expense limits and claims shall follow the procedure described in Section 120 of the Administrative Code, except that meal expenses will be allowed within AQMD boundaries.

f.    Government or group rates offered by transportation or lodging providers must be used when available. 

fg.  Lodging that exceeds the limits described in Section 120 of this Code will only be reimbursed up to the government rate, or if not available, up to the corporate rate, or if neither a government nor corporate rate is available, the actual rate, as evidenced by receipts. 

(1)     In addition, if only the convention/conference rate for the event the Board member is attending is available at the convention/conference hotel and such rate is greater than government or corporate rate, the convention/conference rate is reimbursable. 

(2)     If a rate greater than that permitted or authorized elsewhere in this Section is the only rate available, or if there are overriding reasons why the mission of the AQMD cannot be accomplished at the rates permitted or authorized elsewhere in this Section, such rate may be approved by the Chair of the Board upon written justification submitted by the requesting Board member in advance of the proposed travel.  (The Board Member Travel Request and Report form contains a section for justification and may be used to comply with this requirement.) 

Any upgrades or costs that exceed those allowed by this paragraph are the sole responsibility of the Board member.

h.   Board Members must provide a brief report on meetings attended at AQMD expense at the Board’s next regular meeting.  The reports may be made in writing.  Report forms are available from the Clerk of the Board’s office.  Travel reports are required when a Board Member receives expense reimbursement.  They are not required when a Board Member only receives compensation for attending an event. 

Section 120 - Travel Expenses

Section 120.1 - Expenses for travel shall not exceed:

a.         The actual cost of transportation when by public carrier. 

b.         The actual cost of meals and lodging, as evidenced by receipts, not to exceed:

(1)        Lodging - $75 per night.  If no lodging is available or it is not practicable at $75 per night, the Executive Officer, or designee, can approve additional amounts, when necessary.  Effective November 1, 1999, for management, confidential, and attorney employees and for employees in the Professional Bargaining Unit, and January 1, 2000, for employees in the Office Clerical and maintenance and Technical and Enforcement Bargaining Units, the rate for lodging will increase to Ninety Dollars ($90) per night. 

(2)        Meals - breakfast, $7.50; lunch, $8.50; dinner, $15.  Effective November 1, 1999, for management, confidential, and attorney employees and for employees in the Professional Bargaining Unit, and January 1, 2000, for employees in the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units, meal rates will increase, for breakfast, to Eight Dollars and Fifty Cents ($8.50); for lunch, to Ten Dollars ($10); and, for dinner, to Seventeen Dollars ($17).  Charges exceeding these limits require the approval of the Executive Officer or designee.  Requests without proper receipts may will be denied. 

c.         Employee meal expenses within AQMD shall be reimbursed only when approved by the Executive Officer or designee. 

d.         Meals and travel expenses for other than AQMD employees shall be reimbursed only when approved by the Executive Officer or designee.  Reimbursement will be made for the actual cost of the meal and travel, subject to the limitations presented elsewhere in this Code. 

e.         Meals and travel for other than AQMD employees asked to sit on oral boards used for interviewing prospective employees of AQMD will be reimbursed for the actual cost of the meal and travel, subject to the limitations presented elsewhere in this Code.  The Executive Officer, or designee, must approve a request in advance. 

Section 120.2 - Requests for Travel Expenses and Required Receipts 

All requests for travel expenses shall be filed in duplicate on forms and at times prescribed by the Chief Financial Officer.  Requests must be submitted within 120 days after incurring the expense. 

Receipts must be presented for all travel expenses in excess of $25.

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