R-2022-066 City Council Automobile Allowance Policy 2022-07-19RESOLUTION NO. R-2022-066
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA ENACTING AN AUTOMOBILE ALLOWANCE POLICY TO
REIMBURSE CITY COUNCIL MEMBERS AND THE MAYOR FOR ACTUAL AND
NECESSARY EXPENSES
WHEREAS, Government Code Section 1223 provides that a " [...] city officer [...] may
contract with the appropriate authorities for an allowance or mileage rate for the use of
vehicles owned or rented and used by [the city officer] in the performance of duty, in lieu
of the usual transportation charges"; and
WHEREAS, Government Code Section 36514.5 allows reimbursement of actual and
necessary expenses incurred by City Council members in the performance of official
duties, subject to certain requirements; and
WHEREAS, a car allowance has been determined to be an "actual and necessary
expense" by some courts (ex. Citizen Advocates, Inc. v. Bd. of Supervisors, 146 Cal. App.
3d 171, 176 (1983)); and
WHEREAS, Government Code Section 36516, as interpreted in Attorney General
Opinion 08-405 ((February 18, 2010), 2010 WL 6026760), "specifically provides that
amounts paid by a city to reimburse a council member for actual and necessary expenses
shall not be included for purposes of determining the council member's salary"; and
WHEREAS, the Council Members and Mayor of Pismo Beach incur actual and necessary
expenses related to the use of vehicles they own or rent and use in the performance of
official duty; and
WHEREAS, the City Council finds that adoption and payment of a car allowance in lieu
of a per -mile vehicle expense reimbursement policy is less administratively burdensome
on City staff; and
WHEREAS, the City Council finds that a car allowance of $100 per month is a reasonable
estimation of average actual and necessary car -related expenses authorized for
reimbursement under Government Code Section 36514.5.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach
as follows:
Section 1. The City Council hereby finds and determines that the foregoing recitals are
true and correct and are hereby incorporated by reference.
Section 2. Each Council Member and the Mayor who chooses to execute an
Automobile Allowance Agreement with the City shall be entitled to a monthly
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car allowance of $100, to be paid at such intervals, and during such term,
as provided in the Agreement (Exhibit A).
Section 3. If any section, subsection, sentence, clause, phrase or provision of this
Resolution or the application thereof to any person or circumstances is held
invalid or unconstitutional by any court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of any other
provision or applications, and to this end the provisions of this Resolution
are declared to be severable. The City Council hereby declares that it would
have passed this Resolution and each section, subsection, sentence,
clause, phrase or provision thereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses, phrases or provisions
thereof be declared invalid or unconstitutional.
Section 4. This Resolution shall take effect immediately upon its approval by a vote of
a majority of the members of the City Council.
Section 5.
This Resolution is intended to be cumulative and shall not repeal any other
resolution except to the extent of an irreconcilable conflict; provided,
however, this Resolution shall repeal any portion of any previously adopted
expense reimbursement policy to the extent, and only to the extent, that
such policy applies to reimbursement of Council members and/or the Mayor
with regard to mileage reimbursement or other car -related expenses.
UPON MOTION OF Council Member Guthrie, seconded by Council Member Newton, the
foregoing resolution was adopted by the City Council of the City of Pismo Beach this 19th
day of July 2022, by the following vote:
AYES: 4 Guthrie, Newton, Reiss, Waage
NOES: 1 Blake
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Approved: I Attest:
Ed Waage, May
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Exhibit A
CITY OF PISMO BEACH
AUTOMOBILE ALLOWANCE AGREEMENT
This Automobile Allowance Agreement ("AGREEMENT") is made and entered into as of the date the
AGREEMENT is fully executed by all parties (the "Effective Date"), by and between the City of Pismo
Beach, a municipal corporation ("CITY"), and Name of Council Member ("OFFICIAL"). In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
RECITALS:
A. CITY takes its stewardship over the use of its limited public resources seriously. Periodically,
the City Council has adopted ordinances, resolutions, and policies relating to expenses
actually and necessarily incurred by public officials in connection with their official duties on
City business. In full compliance with the state statute commonly known as AB 1234 (codified,
in relevant part, at Government Code Sections 53232.2 and 53233.3), the Council has
adopted a Travel/Expense Reimbursement Policy and Procedure as part of the City of Pismo
Beach Purchasing Policy & Procedures Manual ("Purchasing Policy") establishing a policy and
guidelines regarding business reimbursement for City officials.
B. Council members may incur transportation expenses while discussing the community's
concerns with state and federal officials; participating in local, regional, state and national
organizations whose activities affect the City; attending educational seminars designed to
improve officials' skill and information levels; attending meetings that benefit the City; and
meeting with residents, members of the business community and other persons on matters
important to the City.
C. Pursuant to the Purchasing Policy, vehicle mileage incurred for use of personal vehicles for
official City purposes is reimbursed at IRS rates in effect at the time the expense is incurred.
Government Code Section 1223 and the Purchasing Policy provide that the Mayor and each
Council Member may contract with the City for a vehicle allowance for the use of vehicles
owned or rented and used by the Mayor or Council Member in the performance of official duty.
In February 2010, the state Attorney General opined that Government Code Section 1223
permits cities to provide a vehicle allowance to their City Council Members (A.G. Opinion No.
08-405 (February 18, 2010).
D. OFFICIAL would like to contract with CITY for a vehicle allowance for the use of vehicles
owned, rented, and used by OFFICIAL in the performance of official duty.
AGREEMENT:
I. VEHICLE ALLOWANCE
A. CITY shall provide to OFFICIAL a monthly vehicle allowance of $100.00, payable as a lump
sum on or around the 1st day of each month. Such amount is designed to reimburse OFFICIAL
for all typical costs associated with OFFICIAL's use of vehicles for City business, including but
not limited to all applicable costs of vehicle acquisition, vehicle liability insurance, insurance
deductibles, maintenance, operating expenses including but not limited to fuel, oil and tires,
depreciation and interest, and costs associated with rental vehicles when the OFFICIAL's
vehicle is unavailable.
B. OFFICIAL shall not be eligible for reimbursement pursuant to section XI. Council Member
Reimbursement Policy of the Purchasing Policy for the first 100 miles of any trip of same -day
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Exhibit A
or to -and -from travel that is covered by the car allowance. For purposes of the Purchasing
Policy and this AGREEMENT, a trip consists of the travel to and from a destination in the
performance of City business. Mileage shall be calculated from City Hall to the destination.
C. OFFICIAL shall maintain all licenses and records required by applicable California and federal
law concerning use of vehicle(s).
II. TERM OF AGREEMENT
A. This AGREEMENT shall continue in full force and effect until such time that OFFICIAL no
longer holds the office of City Council Member or Mayor in accordance with the provisions of
applicable state laws, or until such time that OFFICIAL voluntarily chooses to terminate this
AGREEMENT for any other reason. Notwithstanding the foregoing, in the event the City
Council elects to eliminate the option for an automobile allowance for Council Members and
Mayor, this AGREEMENT shall automatically terminate effective as of the date of such Council
action.
III. GENERAL PROVISIONS
A. If any provision of this AGREEMENT is held invalid or unenforceable, the remainder of this
AGREEMENT shall nevertheless remain in full force and effect. If any provision is held invalid
or unenforceable with respect to particular circumstances, it shall nevertheless remain in full
force and effect in all other circumstances.
B. This AGREEMENT shall be interpreted and construed pursuant to and in accordance with the
laws of the State of California and all applicable City Codes, Ordinances and Resolutions.
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day
and year last written below.
CITY: OFFICIAL:
City of Pismo Beach, a Municipal Corporation
Signed: Signed:
Name: James R. Lewis
Title: City Manager
Dated:
ATTEST:
Signed:
Name: Erica lnderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
Name: Council Member or Mayor Name
Title: Council Member or Mayor
Dated:
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