After attending the Association of Water Board Directors annual conference in San Antonio June, 2010 - just a month after being elected as Director of WCID#89 - I noted that each Director turned in an expense report that seemed to follow his/her own conscience on what was appropriate reimbursement. President Smalls claimed an additional fee of office ($150) reimbursement for the day after the conference had ended, in order to travel back to Houston. Director Watson claimed an $82.70 lunch bill to be reimbursed, although the conference had provided lunch that day.
Indeed, I myself had requested that my $265 auto insurance deductible be reimbursed because I had an at-fault accident on the way to the convention center the opening day of the conference. I thought that the $265 out-of-pocket expense might be allowed reimbursement since it was less than a hotel bill would have been for the required 2 nights lodging, and I had opted to stay with my sister who lives in San Antonio rather than stay in a hotel. Only Director Washington claimed a 2-night hotel stay while at the convention at a cost of $348. President Smalls claimed $609.45 for a 3-night stay for reimbursement. Directors Baber and Watson claimed $711.97 and $791.08 hotel bills, respectively.
The District’s bookkeeper had referred my $265 deductible request for reimbursement to the entire Board for approval, which was denied. None of the other Directors' expense reports were questioned, despite the inconsistencies with the written Travel Reimbursement Guidelines for WCID#89. These written guidelines purported to be part of “a previously adopted Code of Ethics, Travel, Professional Services and Management Policies (the “Code of Ethics”) regarding reimbursement related to District business.” Although I had made repeated requests for this “previously adopted Code of Ethics” over the next several months, it was not provided by any member of the Board who claimed to have personal knowledge of its existence. Neither could the District’s bookkeeper or attorney provide me a copy of this “Code of Ethics”.
Because the District was apparently working without a written Code of Ethics, I created a written ethics policy for the District Board members that would require a proactive effort by each individual to maximize savings for travel and accommodations when seeking reimbursement from the general operating budget for conferences, seminars, and other District business. It also included sections on Conflicts of Interest, Acceptance of Gifts, and Review and Evaluation of Professional Consultants. I presented this policy at the 11/2/2010 meeting.
After a brief discussion, reflected in the minutes of the 11/2/2010 meeting, President Smalls tabled further consideration of my proposed policy, and the other Board members requested that the District's attorney create an alternative proposal that quotes the relevant laws of the state of Texas regarding ethics and states that the District will abide by them. In this alternative proposal, Section 5 states: “The Board shall adopt such other written policies from time to time as might be required to fulfill the requirements listed in Section 49.199 of the Texas Water Code, as amended.”
Section 49.199(a) of the Texas Water Code states “Subject to the law governing the district, the board shall adopt the following in writing…(2) a policy relating to travel expenditures.” Therefore, at today's meeting, I proposed the following policy relating to travel expenditures be adopted by the Board, along with the proposed ethics policy resolution.
Harris County Municipal Utility District No. 89--- Travel Expenditure Policy
1. In order to be eligible for expense reimbursement, a Board member must be present for and participate in all or substantially all of the activities involved in a District-related trip (such as attendance at an approved Association of Water Board Directors Conference) [hereinafter referred to as “Approved Business”].
2. All expenditures incurred that are eligible for reimbursement at an Approved Business event and are over the amount of $25.00, must be documented by an ITEMIZED invoice or receipt (non-itemized credit card or other receipts are not acceptable). Any expenditure below the amount of $25.00 must be documented in writing and sworn to by the Board member seeking reimbursement.
3. If traveling by air on Approved Business, Board members may only be reimbursed for the following expenses:
a. the costs of transportation to and from the airport of departure (e.g. shuttle service) OR the amount of actual mileage to and from the airport of departure at the then-current rate allowed by the Internal Revenue Service and any applicable parking fees; AND
b. the amount of a common carrier ticket purchased at the lowest available coach rate on the date of purchase for a direct flight from the airport of departure to the Approved Business event destination; AND
c. the cost of a rental car (including fuel costs) in the destination city during the days on which the Approved Business event is held at a rate not to exceed the published rate for a full-sized, four-door car (not premium or luxury class) OR the costs of shuttle services if the Board member does not rent a car.
4. If traveling by personal car on Approved Business, Board members may only be reimbursed for the following expenses:
a. the amount of actual mileage to and from the destination city plus actual mileage to and from the Approved Business event at the then-current rate allowed by the Internal Revenue Service; AND
b. reasonable parking fees and tolls while in transit.
5. Each Board member who attends an Approved Business event will receive fees of office equaling the number of days for which the event is scheduled, plus a fee of office for any days of necessary travel required to attend the event on time. The actual number of fees of office must be established by the Board of Directors prior to the commencement of the Approved Business event.
6. Reasonable and necessary meals consumed while attending an Approved Business event may be reimbursable to each Board member, if actually eaten and paid for by the Board member. Meals may be reimbursed during travel time, if reasonable and necessary. No meals for a child, spouse, or guest of the Board member are reimbursable. There is no reimbursement for alcoholic beverages. The maximum number of meals that will be reimbursed must be established by the Board of Directors prior to the commencement of the Approved Business event.
7. If there is a special or discount hotel rate available for participants at an Approved Business event, the District will not reimburse a Board member for more than the special or discount hotel rate, unless hotel rooms at the special or discount rate are no longer available. In such event, a majority of the Board of Directors must approve the rate claimed for reimbursement.
8. The District will not reimburse for any costs associated with a spouse’s, child’s, or other guest’s attendance at an Approved Business event, including social events or programs hosted at the Approved Business event.
9. A Board member shall certify in his/her reimbursement package that none of the expenses submitted for District reimbursement have been reimbursed from another source.
10. Personal entertainment expenses, including golf, books, magazines, newspapers, in-room movies, theater tickets, sporting events, recreational activities, fishing, etc. are not eligible travel expenses and will not be reimbursed.
11. The District’s bookkeeper shall review all expenses requested for reimbursement and will notify the Board of Directors of any items that appear inconsistent with these Guidelines.
AK Babers had left today's meeting by the time that the discussion on ethics occurred. But the other 3 Board members did not want to accept my proposal. They held the vote on the ethics policy with no stated travel reimbursement guidelines. I voted 'NO' because without clearly stated restrictions, Board members will continue to follow their own dictates on using taxpayer money for reimbursing themselves. At the end of the meeting, I insisted that a travel reimbursement policy be on the next meeting's agenda for discussion and action.
If you care how the Board spends your taxes in reimbursing themselves, please attend the meeting on 12/21/2010 at 11:30AM. If you can't attend the meeting, please write of your concerns to the Board of Directors c/o Strawn & Richardson, P.C.
6750 West Loop South, Suite 250
Bellaire, TX 77401-4111
OR e-mail your concerns to me at jroot@wcid89.org and I will print each of your e-mails out to distribute to the Board at the next meeting.
