Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive Officer
Roberto Manchia, County Chief Financial Officer
Subject: Introduction of an Ordinance Amending Chapter 2.10 and Repealing and Replacing Chapter 2.72 of Title 2 of the San Mateo County Ordinance Code
RECOMMENDATION:
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Introduction of an ordinance:
A) Amending Chapter 2.10 of Title 2 of the San Mateo County Ordinance Code to add Section 2.10.065, concerning government claims, formerly codified at Section 2.72.010 of Chapter 2.72 of Title 2 of the San Mateo County Ordinance Code; and
B) Repealing and replacing Chapter 2.72 of Title 2 of the San Mateo County Ordinance Code governing reimbursement of employee expenses; and
C) Waiving the reading of the ordinance in its entirety.
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BACKGROUND:
In 2006, the Board of Supervisors enacted Chapter 2.72 of Title 2 of the San Mateo County Ordinance Code which, among other things, establishes the requirements for reimbursement by the County of expenses incurred by County officers and employees (hereinafter collectively referred to as “employees”) in the performance of their official duties. Examples of such expenses include those incurred for meals, lodging, and travel. Chapter 2.72 has not been amended since 2006, and in the last 20 years, the legal and operational landscape with respect to employee reimbursements has evolved.
Over time, multiple administrative memoranda and policies were issued to guide departments on travel and reimbursement procedures. Some of these memoranda have become outdated or inconsistent with one another. This has led to confusion among staff and complications in processing reimbursement requests.
To address these issues, County staff undertook a comprehensive review of Chapter 2.72 and related administrative policies. This process included collaboration among multiple County offices, including the County Executive’s Office, Controller’s Office, and Human Resources Department, to ensure that the updated policy is practical, legally compliant, and operationally sound. The proposed changes were then shared with all Department Heads, providing an opportunity for feedback.
These changes are intended to achieve several important goals. Establishing and updating requirements that County employees must satisfy in order to be reimbursed by the County for the costs of performing official County business helps to ensure public funds continue to be used for necessary and authorized purposes; allows the County to more easily disclose, track, and defend the use of public funds for reimbursements; sets forth a clear, consistent, and fair set of reimbursement guidelines for all employees to follow; helps the County to comply with applicable laws and regulations regarding the scope of reimbursable expenses; and streamlines operations by ensuring a uniform set of procedures applicable to all employees
DISCUSSION:
The proposed Ordinance updates Chapter 2.72 in several ways and will align the Ordinance Code with the updates to the County’s administrative policies on employee reimbursements. The following is a summary of the most substantive changes:
• Moves current Section 2.72.010 “Claims for Money or Damages”, which sets forth requirements for Government Claims against the County, to a more natural and intuitive location in the County’s Ordinance Code. It will now reside in Article 2.1 “County Administration” under new Section 2.10.065. There, it will immediately precede Section 2.10.070 “County Claims.”
• Updates outdated travel-related and other terminology, such as changing “common carrier services” to “economy class”; “coach” to “economy” in reference to airline travel; “privately owned automobile” to “personally owned automobile,” to account for transportation via rideshare companies like Uber and Lyft; and “County Manager” to “County Executive”;
• Reduces maximum reimbursement rate for lodging from double the Continental United States (CONUS) rate set forth in the Code of Federal Regulations to 175 percent of the amount of the CONUS current rate;
• Reduces maximum reimbursement rate for meals from double the CONUS rate to the actual CONUS current rate;
• Employees who receive a vehicle allowance are not eligible for reimbursement for travel expenses within the County of San Mateo and the City and County of San Francisco. The proposed amendment would also prohibit such reimbursement when traveling within three additional Bay Area counties-Santa Clara, Alameda, and Contra Costa Counties;
• Allows the County Executive, through Administrative Memoranda, to create appropriate processes for submitting claims for reimbursement and for payment of expenses relating to hosting conventions, conferences, trainings, and special meetings;
• Requires submission of receipts for all claims for reimbursement except for certain incidental items (e.g., parking fees) less than or equal to five dollars;
• Reduces the number of days within which an employee must submit an expense report from 120 days to 60 days;
• Eliminates requirement that Board approve advance payments (maximum $2,500) made in emergency circumstances.
If the Board adopts this Ordinance, the County Executive’s Office and Human Resources Department will issue three revised policies in alignment with the Ordinance Code revisions: a new Administrative Memorandum (“Admin Memo”) B-16 (“County Travel and Employee Reimbursement Policy”), which combines the existing version of Admin Memo B-16 (“County Travel Policy”) with current Admin Memo A-5 (“Expense Reimbursement”); a revised Admin Memo D-5 (“Use of Cars for County Business”); and updates to the County’s Driving Policy & Safe Driver Program.
The County Attorney’s Office has reviewed and approved the Ordinance as to form.
COMMUNITY IMPACT:
The updated employee reimbursement policies and corresponding ordinance amendments contribute to ongoing fiscal accountability by ensuring that public funds are used solely for legitimate, necessary, and authorized purposes. They improve transparency and oversight by making it easier for the County to disclose, track, and justify reimbursement expenditures. In addition, the updates enhance compliance with applicable state and federal regulations and support more efficient internal operations through clearer and more consistent procedures.
FISCAL IMPACT:
There is no fiscal impact associated with this action.