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ITEM #7 <br />CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF JUNE 19, 2007 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />FROM: DARYL PARRISH, CITY MANAGER <br />SUBJECT: ADOPT THE FOLLOWING ITEMS REGARDING A MONTHLY <br />AUTOMOBILE ALLOWANCE FOR CITY COUNCIL MEMBERS: <br />(1) A RESOLUTION TO REPEAL RESOLUTION R-24-99; AND <br />(2) AN ORDINANCE ESTABLISHING AN AUTOMOBILE <br />ALLOWANCE FOR CITY COUNCIL MEMBERS <br />DATE: JUNE 11, 2007 <br />BACKGROUND <br />In February 2007, the City Council adopted Resolution R-22-07, which established a new Travel <br />and Reimbursement Policy for the City in compliance with Assembly Bill 1234 ("AB 1234"). City <br />staff continued to examine how AB 1234 affects other expense reimbursement matters, particularly <br />the home office expense allowance and automobile allowance for Council Members. In response <br />to City staff's efforts, the City Council adopted Resolution R-23-07 which eliminated the home office <br />expense allowance. <br />City staff has continued to examine the effects of AB 1234 on the automobile allowance, as well as <br />other relevant statutes and judicial authority. Accordingly, staff has determined that the City <br />Council should adopt an ordinance, rather than a resolution, establishing the automobile allowance <br />and providing specific data supporting the allowance. In conjunction with adopting the new <br />ordinance, it will be necessary to repeal the remaining portions of Resolution No. R-24-99 <br />regarding the existing automobile allowance. <br />DISCUSSION/ANALYSIS: <br />Prior and current state law allows "city officers" to contract with the City to receive a vehicle <br />allowance or fixed mileage rate for the use of personal vehicles in the performance of their duties. <br />(Gov. Code § 1223.) Section 1223 states as follows: <br />"When traveling expenses are allowed by law to any state, <br />county, judicial district, or city officer, he may contract with the <br />appropriate authorities for an allowance or mileage rate for the use <br />of vehicles owned or rented and used by him in the performance of <br />duty, in lieu of the usual transportation charges." <br />In addition, Government Code section 1091.5 states that a city officer is not deemed to have a <br />financial interest in such a contract if the officer is being reimbursed for his or her actual and <br />necessary expenses incurred in the performance of official duties. <br />RVPUB\NSTUBB S\730978.1 <br />