MINUTES OF THE ADMINISTRATIVE AND FINANCE COMMITTEE MEETING
October 12, 2005
CALL TO ORDER / ROLL CALL
Chair Dixon called the Administrative and Finance Committee meeting to order at 3:05 p.m. Committee members present were Chair Dixon, Vice Chairs Dailey and Tu, and Directors Brammell, Johnson, Knutson, Parker, Price, Steiner, and Williams. Committee members absent were Directors Bowersox, Muir, Watton, and Representative Slater-Price. At that time, there was a quorum of the committee. Also present were Directors Croucher, Ferguson, Haddad, Pocklington, and Sundram. Staff present included General Counsel Hentschke, Deputy General Manager Lanspery, Assistant General Manager Cushman, Director of Finance Brust, and others.
OVERVIEW OF DIRECTOR PER DIEM AND TRAVEL EXPENSE REIMBURSEMENT
Mr. Cushman and Mr. Hentschke gave an overview and presentation of director per diem and travel expense reimbursement. Mr. Cushman reviewed the state audits of water agencies and special districts, editorial news coverage, and the legislative activities that had focused on water districts in California over the past few years. The focus of the audits and coverage was on compensation, benefits, travel expenses and policies, contracting practices of the agencies, “sunshine” reports, community relations, and meals/parties for directors and employees.
Mr. Hentschke gave an overview of the new law, AB 1234, which was signed by the Governor on Friday October 7, 2005, and would go into effect in January 2006. Mr. Hentschke’s overview of AB 1234 included the following information:
AB 1234 would apply to all local officials, and would govern the manner in which compensation was paid to Directors for attending Brown Act meetings (such as board meetings, or advisory meetings), conferences, and organized educational activities, which would be specified in a written policy. Reimbursement and per diem would be paid only if the agency had a publicly adopted written policy, for actual and necessary expenses, for the performance of official duties, and for claims submitted in a reasonable time. Default reimbursement rates would be effective if no reimbursement rate had been established. Reimbursement for travel and lodging would need to be at a government or a comparable rate when available. AB 1234 would establish penalties for misuse of public resources or false expense reports, possible loss of reimbursement privileges to the agency, possible restitution to the agency, and possible civil and criminal penalties. AB 1234 would require identification in a written policy of events that would qualify for compensation and reimbursement, adequate documentation of all reimbursable expenses, and the establishment of a travel policy with specific guidelines about lodging limits, transportation, meals, travel day per diem, parking, mass transit fares, mileage, etc.
Mr. Hentschke identified possible issues regarding meetings, travel, and documentation followed by a review of the Water Authority’s current policy, and other agencies’ policies for each issue. He also reviewed a summary of staff recommendations to implement AB 1234, addressed public expectation issues, and how to consolidate the Water Authority’s director compensation and reimbursement policy into one document. Mr. Hentschke recommended the guidelines the Board decided on be incorporated into a new chapter of the Administrative Code, and the existing information be taken out so that all per diem and reimbursement information was in one location.
The Committee and other members present discussed a variety of issues and concerns. Following the discussion the committee continued the matter for deliberation at a future meeting.
ADJOURNMENT
There being no further business to come before the Administrative and Finance Committee, Chair Dixon adjourned the meeting at 4:30 p.m.
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Jesse Dixon
Chair
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