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HomeMy WebLinkAboutPolicy 08 - Directors Compensation, Reimbursement of Expenses and Group Insurance BenefitsOTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 Page 1 of 7 Purpose To provide guidelines for payment of compensation and reimbursement of expenses to Directors in connection with their attendance at meetings or the performance of other authorized business, and for group insurance benefits for Directors. Background Members of the Board of Directors (“Directors”) attend regular, adjourned or special meetings of the Board of Directors (“Board”). In addition, Directors attend other District meetings, committee meetings, association meetings, and educational seminars on behalf of the District. These meetings and seminars are related to District business, water and wastewater, water and wastewater related issues, and California special districts. State statutes authorize District payments for attendance at meetings and reimbursements of expenses incurred. State law also authorizes the District to provide health and welfare benefits for active Directors and, in limited circumstances, retired Directors if they served 12 years and were first elected prior to January 1, 1995. The District is also authorized to offer health and welfare benefits for retired Directors who commenced office on or after January 1, 1995, if the recipient participates on a self-pay basis. Policy The District will compensate Directors on a per diem basis for attendance at authorized meetings or functions and will reimburse Directors for reasonable expenses incurred while traveling on District business to include, lodging, dining, transportation and related incidentals. A.Directors’ Per Diem As provided in Section 1.01 C. of the District Code of Ordinances, each Director shall receive a per diem in the amount of $181 (effective July 1, 2025) for each day of attendance at meetings of the Board or for each day of service rendered as a Director by request or authorization of the Board, not to exceed a total of ten (10) days in any calendar month. Attendance at any meeting shown on Exhibit A to this Policy shall be deemed a meeting requested or authorized by the Board. Attendance at meetings shall be in accordance with Exhibit A. The President of the Board or the Board may authorize a Director to attend meetings not listed in Exhibit A when the President or the Board determines that it is in the interest of the District that a Director attend, and that such attendance be compensated, and expenses reimbursed. Director’s claims for per diem amounts shall be made on a “Board of Directors Per Diem and Mileage Claim Form” (Exhibit B). The President of the Board or the Board may approve reimbursement of expenses outside the per diem limit for a Director if the Director submits receipts for all the related District business expenses. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 Page 2 of 7 The Board President or the Board of Directors may restrict a Director’s ability to receive a per diem for meeting attendance if the Director engages in misconduct. Said restriction may apply to pre-approved meetings as listed on Attachment A of this policy. (Please see Board Policy 40: Ethics.) Attendance at a meeting that is not authorized by this policy (pre-approved meetings) or pre- approved by the President may be approved by the Board for per diem compensation. Director’s seeking per diem compensation for these meetings shall request that the item be presented to the Board at its next regularly scheduled meeting for consideration. The decision of the Board shall be final. When travel arrangements require a day earlier arrival or a day later departure, Directors will be eligible for the $181 per diem and reasonable expenses associated with the extended stay will be reimbursed as specified below. B.Pre-payment of Otherwise Reimbursable Expenses The Director may request pre-payment of registration, transportation, and lodging, using the “Board of Directors Travel Request Form” (Exhibit C). Pre-payments shall be limited to the Director’s expenses only. No advances shall be made on travel expenses. C.Reimbursement of Expenses Each Director shall be reimbursed for travel expenses to and from the meetings described in Exhibit A or for any other authorized District business as follows: 1.Authorization Travel associated with the attendance of meetings or functions for Directors shall be approved in advance by the Otay Water District Board President. To request approval of travel, the Director should complete a “Board of Directors Travel Request Form” (Exhibit C) in order to be eligible for compensation and/or reimbursement. Travel requests will be reviewed and approved by the Board President or the Board. 2.Transportation a.Air Transportation The District will endeavor to purchase airline tickets in advance, taking advantage of discounts and low airfares. b.Automobile 1.Personal Auto: Directors may use their personal vehicle. The District will reimburse Directors at the current rate/mile as established by the IRS, plus tolls, parking, etc., provided, however, if OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 Page 3 of 7 air transportation is available, the total amount of expense paid shall be limited to the cost of coach air travel between points traveled by personal vehicle. Gasoline, collision and liability insurance, and maintenance will be provided by the Director and is deemed covered in the rate/mileage reimbursement. Directors using personal vehicles on District business must maintain a valid California driver’s license and the automobile insurance coverage required by the State of California, or make arrangements for a driver who meets the above requirements. 2.Rental Cars: Directors shall endeavor to use public transportation, taxi, or a ride-sharing service whenever possible. In the event that a rental car is needed for District business, the District will pre-pay or reimburse Directors for the rental car expenses. Gasoline expenses required for District business travel will be eligible for reimbursement. Such rental car shall be a compact or mid-size class, unless upgrades are offered at no additional cost to the District. c.Miscellaneous Transportation Whenever practicable, bus, taxi, rail, shuttle, or ride- sharing service transportation may be used in lieu of, or in conjunction with, the modes above. 3.Meals and Lodging a.Meals and Beverages Whenever travel requires meals, the meals, including gratuity, shall be reimbursable, provided the Director presents a receipt along with the “Board of Directors Expense Claim Form” (Exhibit D) for all meals. Reimbursements for expense items where a receipt has been lost will not be paid until the President or the Board has reviewed and approved the expense item. Meals are reimbursable based on the Meals and Incidental Expenses (M&IE) as updated by the U.S. General Services Administration: 1.Full Day Reimbursement When a Director is traveling for a full day and no meals are provided for by other sources, such as pre-paid registration, the Director may be reimbursed for meal expenses at the rate provided OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 Page 4 of 7 by the M&IE per day, or amounts determined by the President or the Board to be reasonable for the occasion or circumstances. 2.Single Meal Reimbursement When a Director requires reimbursement for a single meal while traveling, the maximum meal reimbursement amount shall be at a rate provided by the M&IE for Breakfast, lunch, and/or dinner, or amounts determined by the President or the Board to be reasonable for the occasion or circumstances. 3.Partial Day Reimbursement When a Director will be traveling for a partial day or where a single meal is provided for by other sources such as pre-paid registration, the maximum reimbursement amount shall be at the rate provided by the M&IE per meal, or such other amounts as may be determined by the President or the Board to be reasonable for the occasion or circumstances. 4.Taxes The maximum meal reimbursement amounts are inclusive of and assume expenses for taxes and gratuities. b.Lodging The District will reimburse Directors or pre-pay accommodations in single rooms at conference facilities or in close proximity when applicable. Or, in the absence of conference accommodations, normal single- room business, government or commercial class accommodation may be obtained. Under normal circumstances, lodging will not be reimbursed for the night before a conference starts and the night after it ends. However, in situations where available travel schedules would require the Director to leave home before 6:00 AM or return home after 12:00 AM, lodging for the night before or the night after will be reimbursable. 4.Entertainment The District shall not cover any expenses incurred for recreation or entertainment. OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 Page 5 of 7 5.Incidental Expenses Unavoidable, necessary, and reasonable authorized expenses will be fully reimbursed by the District. Some examples of allowable expenses are: a.Reasonable transportation to local restaurants and to optional functions that are a part of conference events. b.Conference and hotel parking fees. c.Reasonable gratuities. d.The following expenses are not reimbursable: 1.Alcoholic beverages 2.Parking or traffic violations 3.In-room movies or laundry services 4.Expenses incurred by spouses, family members, or guests. 6.Directors’ Responsibility a.Directors must submit a detailed “Board of Directors Expense Claim Form” (Exhibit D) for reimbursement. Claim forms should be supported by vouchers and itemized receipts of expenditures for which reimbursement is being requested. Receipts must be attached for all expenses. If a receipt is lost, the lost receipt must be noted on the “Board of Directors Expense Claim Form” (Exhibit D) and approved by the President or the Board before any payment can be made. Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District, which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. b.Expenses will not be reimbursed for meetings that have been pre-paid and not attended. The President or the Board may excuse an absence for a meeting. The absent Director shall provide a verbal or written report at the next regularly scheduled Board meeting stating the reason for the absence and, if appropriate, request that it be excused. Directors will be required to reimburse the District for any pre-paid expenses for any unexcused absence. This reimbursement will be made by deduction from future expenditures. c.When two (2) or more Directors combine an expense on one receipt, the Director requesting reimbursement OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 Page 6 of 7 should indicate, on or attached to the Director’s “Board of Directors Expense Claim Form” the identity of the other persons sharing expenses. This will facilitate appropriate allocation of expenses to each participant. d.Expenses incurred by a Director, other than reimbursable expenses, including, but not limited to expenses of the Director’s spouse, family members, or guests are the responsibility of the Director. e.Each Director shall provide a brief report on meetings attended at the expense of the District at the next regular meeting of the Board of Directors [Government Code Section 53232.3(d)]. The report may be provided verbally during the “Directors Reports” section of the meeting or submitted in writing to the District Secretary on the “Board of Directors Meetings Attended Form” (Exhibit E). Written reports will be filed with the minutes of the meeting and become part of the board records. f.All documents related to reimbursable District expenditures are public records subject to disclosure under the California Public Records Act. [Government Code Section 53232.3(d)]. g.The District shall, at least annually, provide a report to disclose any reimbursement paid by the District within the immediately preceding fiscal year of at least $100 for each individual charge for services or product received. “Individual charge” (as defined in California Government Code Section 53065.5) includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee. D.District Group Insurance Benefits 1.Each Director, while serving as a member of the Board of Directors, shall be entitled to the health and welfare and life insurance benefits set forth in the Schedule of Benefits in the District Group Insurance Plan Booklet, which benefits are furnished by the District at District cost, with applicable contributions, for active District employees and Directors. Each active Director shall also be entitled to a $65,000 term life and accidental death and dismemberment insurance policy (subject to policy requirements and any standard age reduction schedule), a $100,000 travel accidental death and dismemberment policy. In addition to the foregoing, the District will pay premiums for additional individual life insurance coverage in an amount of up to OTAY WATER DISTRICT BOARD OF DIRECTORS POLICY Subject Policy Number Date Adopted Date Revised DIRECTORS COMPENSATION, REIMBURSEMENT OF EXPENSES AND GROUP INSURANCE BENEFITS 08 2/20/91 4/2/25 Page 7 of 7 $250,000 for a 20 year term for those active Directors who apply for such coverage with the District’s provider and meet the provider’s standard underwriting guidelines and policy requirements. If coverage at higher amounts or for a longer term is made available by the provider, each Director may purchase such additional coverage on a self-pay basis. 2.Each former member of the Board of Directors, who served in office after January 1, 1981, who was elected to a term of office that began before January 1, 1995, who is at least 60 years of age, and whose total service at the time of termination is not less than 12 years, shall be entitled to the health and welfare and life insurance benefits set forth in the District Group Insurance Plan Booklet, which benefits are furnished by the District, at District cost, for retired Directors. E. Miscellaneous 1.The General Manager shall submit the District’s organizational membership list, which the Board shall review annually in January following reorganization of the Board and election of a new President. 2.Cell Phone expenses are not considered a reimbursable expense. Attachments Exhibit A: Approved Functions List Exhibit B: “Board of Directors Per Diem and Mileage Claim Form” Exhibit C: “Board of Directors Travel Request Form” Exhibit D: “Board of Directors Expense Claim Form” Exhibit E: “Board of Directors Meetings Attended Form” EXHIBIT A Approved Functions List Board Policy for payment of per diem compensation and expenses for Director attendance at District meetings: The Board reviews its authorization and policy for payment of per diem compensation for pre-approved meetings annually, in January following reorganization of the Board and election of a new President. Below is the current Board policy: 1.The following meetings are pre-approved for all Directors to attend and receive per diem compensation and expense reimbursement: a)Otay Water District Regular and Special Board Meetings b)Otay committee meetings for committee members only c)Otay business meetings called by the General Manager or the Board President, or authorized by the Board President where individual Directors are requested to attend d)Except as otherwise specifically excluded in this policy, official District functions that take place during normal business hours where Directors are requested to attend by either the Board President or the Board e)District sponsored events or events where the District sponsors a table and the Board President or the General Manager extends invitations to Directors to attend the event f)Semi-annual conference of the Association of California Water Agencies g)Regularly monthly meeting of Council of Water Utilities h)Business meetings and conferences of the California Special District Association held in San Diego County i)Up to four (4) board meetings of the San Diego County Water Authority per calendar year j)Up to one (1) board meeting of the Metropolitan Water District per calendar year k)Business or Board Meetings of regional and/or local Chambers of Commerce, where the District maintains a membership or whose geographical area includes the District’s service area, and the meeting includes discussions that are water and wastewater-industry related All other meetings not listed here require pre-approval by the President or Board for Directors to receive per diem compensation and/or expense reimbursement. EXHIBIT A 2.The following meetings are pre-approved for designated Otay Director representatives or designated alternate. The District Secretary will maintain an updated list of designated Director representatives. Any other Director who wishes to attend these meetings and receive a per diem must have approval from the President or Board prior to the event or be designated by the President or Board, as an alternate. The pre-approval shall include the attendance of the Director at the commission, committee, board or meeting and any committee, subcommittee or other official or posted meeting of the agencies, commissions, committees or boards listed below: a)Planning Group and government agency meetings that fall within the boundaries of each Directors district (when issues impacting OWD are discussed) b)Inter-Agency Committee Meeting c)METRO (TAC/AFFORD) Commission d)ACWA or CSDA meetings/conferences e)Water Conservation Garden f)WateReuse Association g)South County Economic Development Council 3.The Board President or his designee is pre-authorized to attend District business meetings with cities and other agencies to represent Otay Water District and may claim a per diem and expenses. Any other Director desiring to attend the same meeting of this nature would require approval to attend from the President or the Board in order to receive a per diem and expense reimbursement. 4.When the President or the Board appoints a Director(s) to a committee, the meeting(s) shall be considered pre-approved for per diem and expense reimbursement. 5.The following meetings are not eligible for pre-approved per diem claims: a)Attending other Districts’ Board meetings, unless there is a matter on their agenda that is related to Otay business b)Otay employee appreciation breakfast, luncheons or dinners c)Retirement receptions d)Otay picnics or dinner-dances or other purely social events e) If a per diem reimbursement is offered by another agency (i.e. San Diego County Water Authority and the Metro Commission) f)First Friday Breakfasts unless presenting Otay official business to the assembly g)Any political campaign event or function EXHIBIT A 6.In order to submit a per diem/travel reimbursement the member must attend at least 50% of the meeting (per day) and the reimbursement request must be submitted within 45 days of the occurrence, otherwise it may be considered attended without per diem. The President of the Board will make the final determination. 7.All other meetings/conferences/tours/seminars/ workshops/functions not listed in this policy must be pre- approved by the Board President or the Board. EXHIBIT B (Director’s Signature) GM Receipt: Date: FOR OFFICE USE: TOTAL MILEAGE REIMBURSEMENT: $ INSTRUCTIONS ON REVERSE OTAY WATER DISTRICT BOARD OF DIRECTORS PER DIEM AND MILEAGE CLAIM FORM Pay To:Period Covered: Employee Number:From:To: ITEM DATE MEETING PURPOSE / ISSUES DISCUSSED MILEAGE HOME to OWD OWD to HOME MILEAGE OTHER LOCATIONS Total Meeting Per Diem:$ ($181 per meeting) Total Mileage Claimed:miles EXHIBIT B INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS PER DIEM CLAIM FORM 1.Record the date, and name or purpose/issues discussed of meeting attended on behalf of the District. Note: The District will pay Director's per diem for one meeting/ function per day and the maximum of 10 meetings/functions per month. If a Director attends more than 10 meetings/functions (10 days), the District will reimburse for the mileage and any reimbursable out-of- pocket expenses incurred for these additional meetings. 2.Record number of miles (round trip) driven to attend meeting/function. The use of personal vehicles in the conduct of official District business shall be reimbursed at the current Internal Revenue Service rate. The Director's expense claim should indicate the nature of the trip. If a trip begins at home, the District will reimburse the mileage from home to destination and return mileage. District insurance does not cover personal vehicles while they are being driven on District business. The reimbursement rate is inclusive of an allowance for insurance costs. The District will reimburse Directors for the deductible under their personal insurance policy should they be involved in an accident while on District business. To be eligible for reimbursement, each Director shall maintain a current California driver’s license and at least the minimum vehicle liability insurance required by State law or shall arrange for a driver who meets said standards. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Claim forms shall be submitted within 45 calendar days after the meeting date. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Per Diem Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. OTAY WATER DISTRICT BOARD OF DIRECTORS TRAVEL REQUEST FORM Director: Date of Request: Name and Location of Function: Date(s) function to be held: - Date(s) of travel (flight & lodging): - Sponsoring Organization: Request for Prepayment of Fees Related to the Function: Expense Type Not Needed Pre-Payment Requested Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses – Explain Below Comments: Explanation of Other Expenses: Signature of Director For Office Use Only Below This Line Date of Board President Approval: Expense Type Description Amount Pre-Paid (Estimate) Registration Airline Auto Rental Mileage N/A Taxi/Shuttle N/A Lodging Meals N/A Other Expenses District Secretary Date Processed EXHIBIT C Exhibit E OTAY WATER DISTRICT BOARD OF DIRECTORS EXPENSE CLAIM FORM Pay To:Period Covered: Employee Number:From:To: ITEMIZED REIMBURSEMENT CLAIMED Date Type of Reimbursement Amount TOTAL Reimbursement Claimed:$ Director Signature:Date: GM Receipt:Date: INSTRUCTIONS ON REVERSE EXHIBIT D Exhibit E INSTRUCTIONS FOR PREPARATION OF BOARD OF DIRECTORS EXPENSE CLAIM FORM The necessary expenses incurred while traveling on District business including common carrier fares (economy class), automobile rental charges, District business telephone calls, lodging, baggage handling, parking fees, meals, etc. will be reimbursed when documented on the Director's Per Diem and Expense Claim Forms. Receipts must be attached for all meal expenses. If a receipt is lost, the lost receipt should be noted next to the expense and submitted to the President before any reimbursement can be made. Receipts are required for the reimbursement of all expenses. All receipts must have the nature of the expense and the business purpose noted on the receipt. The District will not reimburse the cost of travel of a personal nature taken in conjunction with travel on official business. Meals shall be reimbursed as per section 3, Meals and Lodging, of this policy (Policy 8). Any receipts that include costs of personal travel (e.g., hotel receipt for employee and spouse) should identify what the cost would have been without personal travel (e.g., single room rate as opposed to double room rate). Claim forms shall be submitted within 45 calendar days after the expense was incurred. Expense claims requiring reimbursement to the District which are not reconciled within 45 calendar days, shall be deducted from the next month’s reimbursement. No information on the Expense Claim Form may be designated as confidential in nature. All expenses must be fully disclosed on the form. The following expenses are not reimbursable: a. Alcoholic Beverages d. Laundry service b. Parking or traffic violations e. Entertainment or recreation c. In-room movies f. Expenses incurred by spouses, family members, or guests. EXHIBIT D Exhibit E Board of Directors Meetings Attended Form Director Name:Period Covered: From:To: Item No. Date Meeting Attended Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. -Instructions on Reverse - Exhibit E Instructions for the Preparation of the Board of Directors Meetings Attended Form 1.Enter the period (dates) of the meetings that will be reported on the form. 2.Record the date, name/purpose of meeting, and issues discussed at the meeting(s) attended on behalf and expense of the District. Board of Directors Meetings Attended Forms shall be submitted to the District Secretary prior to or on the date of the next regular board meeting that follows the dates of the meetings reported on this form. No information on the form may be designated as confidential in nature. This form will be filed with the minutes of the meeting and become part of the board records.