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HomeMy WebLinkAbout07-10-2018 Item 7 - Travel & Meeting Guidelines revisionMeeting Date: 7/10/2018 FROM: Brigitte Elke, Interim Finance Director Prepared By: Vinay Jathanna, Technology Projects Manager SUBJECT: REVISIONS TO THE CITY OF SAN LUIS OBISPO TRAVEL & MEETING GUIDELINES RECOMMENDATIONS 1.Adopt the revised City travel and meeting guidelines related to the implementation of the City’s new Enterprise Resource Planning (ERP) financial system (attachment exhibit A). 2.Rescind and replace Resolution No. 9850 (2006 Series), updating the City travel and meeting guidelines in November 2006, effective October 1, 2018. DISCUSSION Background On August 15, 2017 the City Council approved the release of request for proposal to replace the City’s antiquated finance system with an enterprise resource planning system. On February 14, 2018 the contract was awarded to Sierra Cedar, Inc. The implementation phase of the project is currently underway, and sections of the City’s Financial Management Manual affected by the implementation are being reviewed for alignment with best-practices solutions, and work and approval flows of the new ERP system. Travel & Meeting Expense Policy One of the sections affected by the new system is the Travel & Meeting Expense Policy adopted through Resolution No. 9850 (2006 Series). The revision attempts to consolidate the policy and its contents into logical groupings and clarify language for its major elements according to best practices and system standard functionality as reviewed with the Government Financial Officers Association. The contents of the policy address the following topics: 1.Activities constituting authorized expenses; 2.General standards & allowable expenses; •Travel expenses such as transportation, meal allowance, accommodation, travel time ; •Non-travel expenses such as special events, local meetings and training ; •Other expenses; 3.Travel authorization guidelines; 4.Requests for cash advances & payments to vendors; 5.Additional considerations; and 6.Accounting for expenses. Packet Pg. 71 Item 7 The following revisions to the policy are recommended: 1.Transportation •Clarify the use of City vehicles vs. personal vehicles. 2.Meal Allowance •The total meal allowance remains unchanged at $60/day but allocates individual amounts differently ($15 breakfast, $15 lunch and $30 dinner). No receipts are required, allowances are given as fixed amounts according to the approved travel requirements. The policy is very clear in regards of misuse of funds as well as ethical behavior while on business for the City of San Luis Obispo. •Employee may request the meal allowance in advance of the trip. •Meals can no longer be charged to City credit cards. 3.Non-Travel Meeting & Training Expense has been reworded for clarification. ENVIRONMENTAL REVIEW The recommended actions are not a project as defined under the California Environmental Quality Act. FISCAL IMPACT All travel related expenses are part of the City’s annual budget appropriations and incorporated in each department’s approved expenditures. ALTERNATIVES The Council could decide to leave the policy as currently written. This is not recommended as the revision is required to be properly incorporated in the ERP system for guideline configuration and the use of the standard functionality of the new system. Attachments: a - Travel and Meeting Expense Policy (Exhibit A) b - Draft Resolution c - Resolution 9850 - 2006 Series Packet Pg. 72 Item 7 Travel & Meeting Expense Policy October 2018 (Updated) Packet Pg. 73 Item 7 Contents Section 301 .......................................................................................................................................... 1 TRAVEL & MEETING EXPENSE POLICY .................................................................................................. 1 OVERVIEW.................................................................................................................................... 1 ACTIVITIES CONSTITUTING AUTHORIZED EXPENSES......................................................... 1 GENERAL STANDARDS & ALLOWABLE EXPENSES .............................................................. 2 TRAVEL AUTHORIZATIONS ...................................................................................................... 5 REQUESTS FOR CASH ADVANCE AND PAYMENTS TO VENDORS ...................................... 6 ADDITIONAL CONSIDERATIONS .............................................................................................. 7 ACCOUNTING FOR EXPENSES .................................................................................................. 8 Section 350.......................................................................................................................................... 1 MILEAGE REIMBURSEMENT RATE ........................................................................................................ 1 Section 351 .......................................................................................................................................... 1 AUTHORIZATION DURING TRAVEL CHILL .............................................................................................. 1 Packet Pg. 74 Item 7 Page: 301-1 Section 301 OVERVIEW These guidelines establish the basic policies and procedures for travel on City business or attendance at meetings by all employees and officials. Everyone who travels or attends meetings for City business purposes (or supervises someone who does) is responsible for knowing and following these guidelines. If any conditions covered in an employee Memorandum of Agreement (MOA) are different to the policy explained here, then the MOA stipulations are followed. These guidelines are organized into the following eight sections: 1.Activities Constituting Authorized Expenses 2.General Standards & Allowable Expenses 3.Travel Authorizations 4.Requests for Cash Advance & Payment s to Vendors 5.Additional Considerations 6.Accounting for Expenses Travel Authorization (TA) form must be completed for all expenses related to attending meetings or conferences and submitted for approval to the Department Head, prior to arranging the trip. Please refer to Finance SharePoint site for the TA Form and instructions for completing the form. The system of record for all travel and meeting related expenses is Oracle Expense Management module. Besides ensuring that travel by City employees and officials is conducted in accordance with this policy, the Oracle Expense Management module provides a means to manage, approve and track the total cost of attending conferences, meetings, and seminars and provides documentation for cash advances, vendor payments, and credit card purchases. Adoption and Implementation. The Council is responsible for adopting the City’s travel and meeting policies and for approving any significant policy revisions to them. The City Manager is responsible for developing administrative procedures as needed to implement the guidelines. In this role, the City Manager is authorized to make minor administrative changes in the policies if they are intended to carry out the purpose of these policies and will not have any significant policy or fiscal impacts. ACTIVITIES CONSTITUTING AUTHORIZED EXPENSES Expenses incurred in connection with the following activities constitute authorized expenses, along with other criteria of this policy, including good judgment in the use and stewardship of the City's resources. Pre-authorization is required for all overnight travel and meeting related expenses in excess of $200 such as: ■Communicating with representatives of regional, state and national government on City TRAVEL & MEETING EXPENSE POLICY Packet Pg. 75 Item 7 Page: 301-2 adopted policy positions. ■Serving on professional organization or governmental committees, bo ards or task forces. ■Attending educational seminars, conferences or organized educational activities designed to improve skill levels or provide information on topics important to City policy and operations. ■Preparing research for City projects or implementing adopted City plans, policies, goals or programs. ■Attending meetings involving activities or decisions important to City interests, consistent with adopted plans, policies, goals or programs. ■Attending events where the City is a formal sponsor or participant, or in performance of official duties for the City. ■Communicating with employees or representatives of community groups on policy positions adopted by or under consideration by the City. ■Recognizing volunteer or employee service to the City. ■Engaging in other business-related activities with a direct connection to the implementation of adopted City plans, policies, goals or programs. The City is responsible for paying all authorized travel or meeting expenses. These include transportation, lodging, registration fees, meals, and any other related expenses such as parking, baggage handling, and telephone costs if they fit within these criteria. Although expenditures below $200 don’t require prior authorization, the expenses must be claimed using Oracle Payables Expense module. GENERAL STANDARDS & ALLOWABLE EXPENSES The policy addresses the requirement for good judgment in requesting, arranging , and expending travel and meeting related expenses. 1.Incurring Travel Expenses 1.1. Transportation – Getting to the Destination The mode of transportation selected is based on minimizing the time away from work, potential for lost work time, overtime, or increased lodging costs. ■Common carrier, in coach class (such as bus, train or plane) is the preferred mode of transportation unless there is a valid reason for using private transportation. ■All air travel on City business will be coach class. ■Discounted government or sponsoring group rates will be used whenever these are offered and available. ■Use of a City vehicle is recommended when traveling within the state; especially if two or more employees or officials are traveling together. ■If a City vehicle is not available, or if there is a valid reason to use a personal vehicle, advance approval from the Department Head is required. Employee will be reimbursed at the currently approved mileage rate as stated in section 350 below. Mileage will be calculated based on online mapping resources (such as Google Maps) at the shortest distance from the Packet Pg. 76 Item 7 Page: 301-3 starting point to end destination. If d riving a privately-owned vehicle on City business, employee must: 1.Possess a valid California driver’s license. 2.Carry automobile liability insurance as required by the State of California Department of Motor Vehicles. 3.Any damage to the car, needed service or repair occurring on the trip will be the employee’s responsibility, as these costs are included in the City’s per mile cost reimbursement. Mileage in-Lieu of Common Carrier Costs. If a common carrier would otherwise be the preferred mode of transportation, but the employee will use a personal vehicle instead (subject to the approval guidelines set forth above), the reimbursed amount will not be more than the common carrier cost. 1.2. Transportation at Destination ■At destination location, use of public transit such as buses, streetcars, and subways are appropriate modes of transportation to get to the destination. Social outings on employee’s time are not covered. ■Use of taxis, or other similar, more individually focused transportation modes (such as Uber, Lyft, etc.) or car rental is allowed when public transit or other common carriers are not reasonably available. 1.3. Meal Allowance ■The following amounts (including non-alcoholic beverages, taxes and gratuities) are allowed for each meal for a total of $60.00 without the employee requiring submitting receipts. The per meal allowance is as follows for the total of $60: Breakfast $15.00 Lunch $15.00 Dinner $30.00 ■If travelling to an area with higher cost of living, the department head may approve an allowance greater than what is specified above. ■Employees can request the total meal allowance required for the duration of the trip in advance of the travel. ■Employees cannot use City issued credit cards for purchasing meals considering the allowance provided as per above. ■On the first day of travel, if starting in the morning, breakfast allowance is not allowed and if starting in the afternoon, lunch allowance is not allowed. ■On the last day of travel, no dinner allowance is allowed. ■Because of reimbursement limitations by other agencies (such as P.O.S.T.) or other budget constraints, department heads may authorize lower meal allowances than stipulated above. ■Any amounts exceeding the limits stipulated above require approval by the department head. ■If there are conflicts between these allowances and Memorandums of Agreement (MOA) with employee associations, the MOA will apply. Packet Pg. 77 Item 7 Page: 301-4 ■If meals are provided without charge at a meeting, conference, or while in transit, meal costs cannot be claimed as expense, regardless of whether or not the employee elects to eat the provided meals. 1.4. Accommodations ■The City pays for a single room (including taxes and parking) for as many nights as necessary to complete the purpose of the trip. ■It is preferred to stay at the hotel where a conference is held, even if that hotel may be slightly more expensive than others in the area. ■A hotel close to where business is conducted is preferable, even if it may be slightly more expensive than outlying hotels. ■If there is any doubt about choosing accommodations, concurrence or direction must be obtained from the Department Head or the immediate Supervisor prior to making a reservation. ■When conference or training sponsors have made arrangements for lodging, employees must stay at one of these facilities and the cost must not exceed the maximum group rate published by the organizers. In the event that rooms are not available at one of these facilities, employee should stay at a comparable facility at a comparable cost, not to exceed the maximum group rate published by the sponsor. Approval must be obtained from the Department Head if the costs exceed these rates. ■If any of the above items are not applicable to the situation, then accommodations selected must be both economical and practical. ■Reservations will be made immediately upon receiving approval for the travel. ■Any unused reservations must be cancelled in advance of travel. If the City is charged for an unused reservation, employee will bear the cost unless circumstances requiring cancellation were reasonably beyond the employee’s control. ■When making lodging reservations, eligibility for exemptions from the local transient occupancy tax (TOT) should be confirmed since some cities exempt travelers on City business If the lodging operator requires an official, written claim for exemption, an exemption form must be completed. Please refer to Finance SharePoint site for the TOT Form and instructions for completing it . ■Additionally, discounted government or group rates must be requested and used if they are available. 1.5. Compensation for Travel Time ■When travel time exceeds the normal workweek, the City’s rules for overtime apply based on the Memorandum of Agreement (MOA) that dictates the overtime rules for the applicable employee association. ■In determining overtime compensation, normal commute time should be deducted from the total travel time. ■Normal unpaid meal periods are not considered work time when traveling. ■Overtime eligibility applies equally to drivers and passengers and should be granted whether Packet Pg. 78 Item 7 Page: 301-5 the travel occurs during normal workdays, weekends, or evenings. 2.Incurring Non-Travel Expenses 2.1. Special Events The City will reimburse expenses incurred by the employee for attending such meetings and hospitality as may, from time to time, be determined by the Council to be appropriate ; such as the annual Chamber dinner. Costs for such special occasions will be determined by specific Council action authorizing such events. 2.2. Local Meeting and Training Costs The City will reimburse expenses incurred in attending meetings or conferences held locally which do not include travel expenditures, subject to the following guidelines: ■Meals are limited to activities outside of normal duties, such as business-related meetings held before or after regular working hours (including working lunches where this is the only time available) or extended overtime due to special projects or emergencies. ■Meal reimbursements are not allowed as part of routine daily work assignment s or training within City limits, unless part of the registration cost or the meal is served on site as part of the program to keep all participants together and not have them disperse for meals. ■Meals incurred during training held outside the City limits are only allowable when the training (including travel time) spans the normal meal period. For example, if training is held outside of the City limits from 9:00 until 10:30 AM at a location that is an hour away from the City, meal costs for lunch would not be reimbursable. However, meal costs for lunch under similar circumstances where the training is held from 9:00 AM to 3:00 PM is reimbursable. ■Reimbursement for meal costs in these circumstances are subject to the City’s meal cost guidelines for overnight travel. 2.3. Other Expenses The City will reimburse the employee for costs incurred while at a meeting or other function when such costs are directly linked to the program or subject matter of the meeting. Examples of costs that may be borne by the City include printed materials, tapes, or other training material that are available for sale at the meeting. TRAVEL AUTHORIZATIONS Travel Authorizations (TAs) are required whenever the total estimated cost will exceed $200 or overnight accommodations are required. Department Head approval of TAs is required for any travel within the State that exceed $200. Travel to Hawaii or international destinations requires further approval of the City Manager or his/her designee. A City Manager report is not typically required. When a Travel Chill policy is in effect, prior authorization is required from the City’s Administration Department and at least one travel approval objective must be met as explained in section 351 below. Completed TAs and accompanying voucher requests must be submitted to the Department Head as far in advance as possible. Travel expenses are processed in Oracle Expense Management Packet Pg. 79 Item 7 Page: 301-6 module to account for them. Department Heads approving TAs are responsible for determining that the cost is reasonable and justified by and the trip’s purpose based on the following: 1.The purpose cannot be accomplished by mail, telephone, or webinar. 2.The seminar, meeting, or conference is necessary to accomplish key City goals and objectives and is unavailable locally, or in a closer location, if overnight accommodations or out of state travel are required. 3.The minimum number of City staff members are going. 4.The itinerary ensures accomplishment of the purpose at the lowest reasonable cost. 5.The traveler understands and follows the travel guidelines. 6.There is sufficient funding in the appropriate travel budget to cover the costs. Ultimately, it is the responsibility of each City employee and official incurring travel for following these policies and exercising good judgment in the use and stewardship of the City’s resources. Failure to do so is a serious breach of the City’s ethics policy. Doing so , even if the intent is to reimburse the City later , will result in disciplinary action, up to and including termination. REQUESTS FOR CASH ADVANCE AND PAYMENTS TO VENDORS There are four ways to pay for travel expenses: 1.Direct vendor payments Direct vendor payments are made by the City to an organization to pay for specific costs related to a trip - usually registration fees, lodging, and airfare. 2.Cash advances/reimbursements Cash advances are lump sum payments made to the employee prior to departure to cover expenses as they arise on the trip. If an employee requests a cash advance, the employee’s Department Head must review the amount to ensure it is reasonable. When the employee returns, s/he must account for all expenses incurred and return the unused portion of the advance. The employee will be reimbursed the difference if the actual authorized expenses incurred exceed the amount advanced. 3.Credit cards If the employee has been issued one, City issued credit cards must be used, in all circumstance, to pay for reservations or for expenses incurred during the trip (except for meals as explained in the Meal Allowance section above). Credit cards are issued pursuant to the City credit card policy (Section 275 of the Financial Management Manual). 4.Out of pocket expenses All expenses must be charged to City issued credit cards. In exceptional cases where expenses are paid out of pocket by the employee, for which reimbursements (or refunds to the City) are processed, proper receipts must be submitted (for exceptions refer to Meal Allowance section above). In the event that receipts are not available, employee must provide a written explanation of the circumstances and the reason for incurring this expense, signed by the supervisor. Packet Pg. 80 Item 7 Page: 301-7 Please refer to Oracle Expense Management process for more information to obtain either direct vendor payments or a cash advance. When processing travel and meeting expenses online, appropriate receipts or invoices are required as back up (uploaded into the header of the request), including a copy of the approved pre-travel authorization report (TA). ADDITIONAL CONSIDERATIONS ■If an employee takes time away from official travel business for personal matters, or delays return after completing the travel business, employee will not be reimbursed for expenses incurred during that time. When combining business and personal travel in this manner, Department Head approval is required. If this extended period occurs during regular scheduled work hours, the time will be counted as vacation, or other paid leave time as appropriate, or leave without pay. Only the minimum mileage allowance between starting point and end destination is allowed, as explained in the transportation section of this policy. ■As explained above, if travelling by air and the employee plans to delay the return for personal reasons, the employee may extend the return date, if this does not increase the cost of the airfare. If the cost increases, it is the responsibility of the employee to pay for the added cost. ■If an employee becomes sick and must delay returning, the employee will be reimbursed for the additional living expenses (except those directly related to the illness, such as physician or hospital costs) until the employee is able to return home. Supervisor must be notified as soon as possible of the illness. The time will be counted as sick leave if it occurs during normally scheduled work hours, and the City's normal sick leave rules will apply. ■Employee must maintain a detailed record of all expenses incurred during travel: transportation, lodging, baggage handling, parking fees, registration fees, telephone (including reasonable calls to communicate home, excludes City issued cell phones) and any other reasonable and necessary expenses. Receipts must be submitted for all expenses. Since the employee is claiming allowance for meals, no receipts are required. ■Spouses and guests are welcome to accompany an employee on City travel and at conferences, seminars, and meetings. However, any additional costs associated with the participation of a spouse or other guests are the responsibility of the employee. Exceptions to this policy include the annual League of California Cities dinner and any other occasions as specifically approved by the Council. ■Due to liability concerns, non-City employees should not ride as passengers in City vehicles when it is not directly related to City business. However, Department Heads may approve exceptions on a case-by-case basis, subject to review by Risk Management. ■City funds must not be used to purchase alcohol or reimburse employees for alcohol related costs. ■These guidelines are not intended to address every issue, exception, or contingency that may arise in the course of City related travel or attendance at meetings. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of the City's resources. Failure to do so is misuse of City funds and a serious breach of the City’s ethics policy. Doing so , even if the intent is to reimburse the City later, will result in Packet Pg. 81 Item 7 Page: 301-8 disciplinary action, up to and including termination. ACCOUNTING FOR EXPENSES A completed Travel Payable Expense Report is required for Accounting within 10 business days of returning from travel, even when a trip does not include an employee advance or reimbursement . The final accounting is processed by completing the report in Oracle Expense Management module. Upon completion and submission of the report, the system workflow will route the report to the Department Head or designee for automatic approval. Department Heads approving expense reports are responsible for ensuring that: 1.All expenses are reasonable, necessary, and consistent with this policy. 2.Any required receipts are attached. 3.The final disposition is correct (balance due to employee or balance due to the City). 4.Any amounts due to the City are reimbursed promptly. Upon approval by the Department Head, the report is automatically routed to Accounting for payment where applicable. If the City owes the employee, the expense report is automatically queued for payment in the next check register once all approvals are complete. If the employee owes the City, the payment must be made at the Revenue desk and a receipt obtained. This receipt must be attached to the expense report online in Oracle Expense Management module prior to submission for approval. Packet Pg. 82 Item 7 Page: 301-1 Section 350 Under the City’s fleet management program, the City reimburses employees for using their personal car in conducting City business at the current IRS approved rate listed at www.irs.gov. Consistent with the IRS basis in setting this rate, the City’s per mile reimbursement rate reflects all costs associated with operating a vehicle, such as depreciation, lease payments, maintenance, repairs, fuel, oil, insurance (including deductibles) and vehicle registration fees MILEAGE REIMBURSEMENT RATE Packet Pg. 83 Item 7 Page: 351-1 Section 351 Objectives to be met to obtain authorization when a travel chill is in effect: ■Required for certifications for specific positions ■Necessary for public health, safety or other high priority service needs ■Focused on process improvement, efficiency and/or cost savings ■Associated with staff involved in leadership positions in professional organizations and associations AUTHORIZATION DURING TRAVEL CHILL Packet Pg. 84 Item 7 R ______ RESOLUTION NO. _____ (2018 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S TRAVEL AND MEETING EXPENSE POLICY GUIDELINES WHEREAS, in the course of conducting City operations it is necessary to clarify the guidelines for employees submitting expenses for City related travel and meeting costs ; and WHEREAS, the Council adopted Resolution No. 9850 (2006 Series) approved by the Council on November 14, 2006 and subsequently updated by the City Manager on November 7, 2007, which set forth the City’s travel and meeting expense policy guidelines; and WHEREAS, the City has contracted to implement a new Oracle Cloud Enterprise Resource Planning (ERP) financial system by October of 2018, which will greatly increase transparency and accountability in City purchasing activities ; and WHEREAS, the subject changes to the travel and meeting policy guidelines will streamline the expense report processes, while maintaining appropriate checks and balances. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that : SECTION 1. The City’s Financial Manual Travel and Meeting expenses are hereby amended as set forth in Exhibit A which shall be implemented upon the official go -live date for the Oracle ERP System in October of 2018. SECTION 2. Resolution Number 9850 (2006 Series) is hereby superseded to the extent inconsistent herewith. Packet Pg. 85 Item 7 Resolution No. _____ (2018 Series) Page 2 R ______ Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2018. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo , California, this ______ day of ______________, _________. ____________________________________ Teresa Purrington Interim City Clerk Packet Pg. 86 Item 7 RESOLUTION NO. 9850 (2006 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO UPDATING TRAVEL AND MEETING GUIDELINES WHEREAS, the City of San Luis Obispo reimburses its officials and employees for travel and business expenses incurred by them in the course of their duties in accordance with adopted travel and meeting guidelines; and WHEREAS, the Council last updated the City's travel and meeting guidelines in November 2000; and WHEREAS, it is timely to update these guidelines to reflect current conditions, improved procedures and State law. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that Resolution No. 9126 is hereby rescinded and the attached Travel and Meeting Guidelines are hereby adopted. Upon motion of Council Member Ewan seconded by Vice Mayor Settle, and on the following roll call vote: AYES: Council Members Brown, Ewan, and Mulholland, Vice Mayor Settle, and Mayor Romero NOES: None ABSENT: None The foregoing resolution was adopted on November 14, 2006. Mayor David F. Romero ATTEST: Audrey Ho er, Ci Clerk APPROVED AS TO FORM: Jon ha . Lowell, City Attorney Packet Pg. 87 Item 7 Section 301 OVERVIEW These guidelines establish the basic policies and procedures for travel on City business or attendance at meetings by all employees and officials. Everyone who travels or attends meetings for City business purposes (or supervises someone who does) is responsible for knowing and following these guidelines. These guidelines are organized into the following eight sections: 1. General Standards 2. Allowable Expenses 3. Planning an Official Trip 4. Travel Authorizations 5. Making the Trip 6. Incurring Non - Travel Expenses 7. Accounting for Expenses 8. Completing Travel Authorizations and Expense Reports The key document in the administrative process is the Travel Authorization/Expense Report TA). Besides ensuring that travel by City employees and officials is conducted in accordance with these guidelines, the TA summarizes the total cost of attending conferences, meetings, and seminars and provides documentation for cash advances, vendor payments and credit card purchases. General instructions for, completing and processing this form are also included in these guidelines. Adoption and Implementation. The Council is responsible for adopting the City's travel and meeting guidelines and for approving any significant policy revisions to them. The CAO is responsible for developing administrative procedures as needed to implement the guidelines. In this role, the CAO is authorized to make minor administrative changes in the guidelines as long as they are intended to carryout the purpose of these guidelines and will not have any significant policy impacts. O GENERAL STANDARDS These guidelines do not require you to take a bus, stay in a cheap motel or eat only in fast food restaurants. A bus or a train may cost less than a plane, but the added time away from work may make these slower options more expensive to the City overall. The meal allowances established in these guidelines allow you to eat in moderately priced restaurants. In all areas, not just economy, you are responsible for exercising good judgment in requesting, arranging and making a trip. It should be thoroughly planned, well in advance. You should not mix personal business with official business if it will cost the City anything in dollars or lost time, or if it will harm the City's interests in anyway. 301 -1 Packet Pg. 88 Item 7 Travel and Meeting Guidelines These guidelines are not intended to address every issue, exception or contingency that may arise in the course of City travel or attendance at meetings. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of the City's resources. ALLOWABLE EXPENSES Expenses incurred in connection with the following activities generally constitute authorized expenses, as long as the other guidelines of this policy are met, including good judgment in the use and stewardship of the City's resources. Communicating with representatives of regional, state and national government on City adopted policy positions. 2. Serving on professional organization or governmental committees, boards or task forces. 3. Attending educational seminars, conferences or organized educational activities designed to improve skill levels or provide information on topics important to City policy and operations. 4. Preparing research for City projects or implementing adopted City plans, policies, goals or programs. 5. Attending meetings involving activities or decisions important to City interests, consistent with adopted plans, policies, goals or programs. 6. Attending events where the City is a formal sponsor or participant, or in performance of official duties for the City. 7. Communicating with individuals or representatives of community groups on policy positions adopted by or under consideration by the City. 8. Recognizing volunteer or employee service to the City. 9. Engaging in other business related activities with a direct connection to the implementation of adopted City plans, policies, goals or programs. PLANNING AN OFFICIAL TRIP How willyou travel? When planning the transportation portion of your trip, you should consider all aspects of cost to the City —daily expenses, overtime, lost work time —as well as actual transportation costs. In general, common carrier (such as bus, train or plane) is the preferred mode of transportation. You should use an intercity bus, train or airplane unless there is a valid reason for using private transportation. For example, use of a City vehicle — especially if two or more employees or officials are traveling together —may be less expensive for travel within the State. However, as noted above, the increased time for automobile transportation —and the potential for lost work 301 -2 Packet Pg. 89 Item 7 u Travel and Meeting Guidelines time, overtime, or increased lodging costs — should be considered in determining the best mode of transportation. Transportation at Your Destination. If you need local transportation at your destination, use of public transit such as buses, streetcars and subways is appropriate: the City will reimburse you for these expenses. The City will also reimburse you for taxis when public transit or other common carriers are not reasonably available. If a car rental is required, you may use a City credit card or request reimbursement when you return (see Section 275 of the Financial Management Manual regarding guidelines and procedures for using City credit cards). Air Travel. All air travel on City business should be coach class. It is the City's policy to use discounted government or sponsoring group rates for transportation whenever these are offered and available. Traveling by Automobile. If you will be driving, you should use a City vehicle if one is available. You may use a City credit card to purchase gasoline or request reimbursement when you return. If a City vehicle is not available, or there is another reason why you should drive your personal car, you may do so with the approval of your department head. You will be reimbursed at the currently approved per mile rate (see Section 350 of the Financial Management Manual). The following intercity mileages provided by the Automobile Club of Southern California may be used: City One Wnv'1lt leage. ° Cih._ One Way Mtleage Anaheim 227 Sacramento 286 Bakersfield 137 San Diego 324 Fresno 138 San Francisco 231 Los Angeles 201 San Jose 188 Monterey 148 Santa Barbara 108 Oakland 228 Santa Maria 30 Additionally, you may also use third party sources such as "Yahoo Maps" in determining mileage reimbursements. To drive a privately owned vehicle on City business you must: 1. Possess a valid California driver's license. 2. Carry liability insurance limits required by the City's Risk Management Manual. 3. Realize that any damage to the car, needed service or repair occurring on the trip will be your responsibility, as these costs are included in the City's per mile cost reimbursement. 301 -3 Packet Pg. 90 Item 7 c: o Travel and Meeting Guidelines Mileage in -Lieu of Common Carrier Costs.. In the event that a common carrier would otherwise be the preferred mode of transportation, but you will use a personal car instead subject to the approval guidelines set forth above), you will not be reimbursed more than the common carrier cost. When will you go? By what route? You should schedule your trip so that you leave at the latest reasonable hour and still arrive at your destination on time. You should also return promptly when your business is finished, thereby minimizing the time away from work and ensuring full reimbursement of all related expenses. You should generally take the most direct and commonly traveled routes. Other routes may be authorized when official business requires their use. If you take an indirect route or stop along the.way for personal "reasons, the City will not reimburse you for related expenses. What about compensation for travel time? When travel time exceeds your normal workweek, the City's rules for overtime apply. In determining overtime compensation, normal commute time should be deducted from the total travel time. Additionally, normal unpaid meal periods are not considered work time when you are traveling. Overtime eligibility applies equally to drivers and passengers, and should be granted whether the travel occurs during normal workdays, weekends or evenings. Wliere will you stay? The City will pay for a single room (including taxes and parking) for as many nights as necessary. The accommodations you use should be economical but practical. For example, it is preferable to stay at the hotel where a conference is held, even if that hotel may be slightly more expensive than others in the area.. Location is also important: a hotel close to where you will be conducting business may be slightly more expensive than outlying hotels, but it may be easier to achieve the City's travel goals by staying at the closer location. In general, you When conference or training sponsors should stay at the most reasonably priced have made arrangements for lodging, you should stay at one of these facilities and accommodations available consistent with the the cost should not exceed the maximum purpose and goals of your travel. group rate published by them. If you have a. question about using a particular hotel, obtain concurrence or direction from your department head before making a reservation. Should you make reservations? In the event that rooms are not available at one these facilities, you should stay at a comparable facility at a comparable cost, not to exceed the maximum group rate published by the sponsor. Whenever possible, you should make reservations. 'They are often required for large conferences. You can use a City credit card number to confirm reservations. Be sure to cancel any reservations you will not use. If the City is charged for an unused reservation, you will pay that charge unless circumstances requiring cancellation were reasonably beyond your control. 301- 4 Packet Pg. 91 Item 7 0 Teave_I and Meeting Guidelines, When making lodging reservations, be sure to ask about exemptions from the local transient occupancy tax (TOT): some cities exempt travelers on City business, others don't. If there is an exemption, you can save up to 15% on lodging costs depending on the local TOT rate. Almost all lodging operators will require an official, written claim for exemption. A sample for this purpose is provided in Exhibit A. Additionally, you should also ask about any discounted government or group rates; and use them if they are offered and available. O TRAVEL AUTHORIZATIONS TA's are required whenever the total estimated cost will exceed $200 or overnight accommodations will be required. Otherwise, credit cards or the City's standard voucher system may be used to request vendor payments or expense reimbursements. Department head approval of TA's is required, and out -of -state travel requires the further approval of the CAO. The first page of the completed TA and accompanying voucher requests should be submitted to your department head as far in advance as possible. The reverse side of the TA will be used when you return to account for your actual travel expenses. Department heads approving TA's are responsible for determining that the cost is reasonable and justified by the trip's purpose. They should be certain that: 1. The purpose cannot be accomplished by mail or telephone. 2. The seminar, meeting or conference is necessary to accomplish key City goals and objectives and is unavailable locally if overnight accommodations are required. 3. The minimum number of City staff members are going. 4. The itinerary ensures accomplishment of the purpose at the lowest reasonable cost. 5. The traveler understands and follows these guidelines. 6. There is enough money in the appropriate travel budget to cover the costs. Ultimately, the responsibility for following these guidelines and exercising good judgment in the use and stewardship of the City's resources rest with each City employee and official incurring travel, meeting or meal costs on City business. Requests for Cash in Advance and Payments to Vendors The City will pay all legitimate expenses of your trip or meeting. These include transportation, lodging; registration fees, meals and any other related expenses such as parking, baggage handling and telephone costs if they are for official business and fit within these guidelines. There are three ways to pay for travel expenses: direct vendor payments, cash advances /reimbursements and credit cards. Direct vendor payments are made by the City to an organization to pay for specific costs related to a trip — usually registration fees, lodging and airfare. Cash advances are lump sum payments made to you before you leave to cover expenses 301 -5 Packet Pg. 92 Item 7 C Travel and Meeting Guidelines as they arise on the trip; and reimbursements ( or refunds to the City) are processed after your travel is completed. Credit cards are issued pursuant to the City credit card policy (Section 275 of the Financial Management Manual). If you request a cash advance, your department head must review the amount to be sure it is reasonable. When you return, you must account for all expenses you incurred, and return the unused portion of the advance. You will be reimbursed the difference if the actual, authorized expenses you incurted exceed the amount advanced. To obtain either direct vendor payments or a cash advance, you must complete the appropriate sections of the TA and attach payment vouchers for all payments (including cash advances). You should also attach a copy of the approved CAO transmittal report (if required). You should retain a copy of the completed TA (both sides) because you will need it when you return to reconcile and account for your actual expenses. TA Forms. The TA Form is available as an Excel file on the City's Intranet. MAKING THE TRIP There are two key "golden rules" to remember about making an official trip: 1. Keep it official. 2. Keep records for all expenses. Keeping It Official If you take time away from official business for personal matters, or if you delay your return after completing your business, you will not be reimbursed for expenses incurred during that time. When combining business and personal travel in this manner, department head approval is required. If this extended period occurs during your regular scheduled work hours, the time will be counted as vacation, comp time (if available) or leave without pay. If you become sick and must delay your return, you will be reimbursed for your additional living expenses (except those directly related to your illness, such as physician or hospital costs) until you are able to return home. You should notify your supervisor as soon as possible if you become ill. The time will be counted as 'sick leave if it occurs during your normally scheduled work hours, and the City's normal sick leave rules will apply. And lastly, all expenses must be incurred in accordance with the guidelines set forth in this policy. Keeping Records for All Expenses As discussed below under Accounting for Expenses, you must maintain a detailed record of all expenses incurred during your travel: meals, transportation, lodging, baggage handling, parking 301 -6 Packet Pg. 93 Item 7 r Travel and Meeting Guidelines fees, registration fees, telephone (including reasonable calls to communicate home) and any other reasonable and necessary expenses. Receipts must be submitted for all expenses. In the event that receipts are not available, you must provide a written explanation of the circumstances as to why this is the case and reason you incurred this expense. Meal Guidelines The following amounts (including beverages, taxes and gratuities) are allowed for meals: Breakfast 10.00 Lunch 15.00 Dinner 35.00 As noted above, receipts are required for all meal costs. Because of reimbursement limitations by other agencies (such as P.O.S.T) or other budget constraints, department heads may authorize lower meal allowances. Any reimbursements exceeding these allowances require approval by the department head. In the event that there are conflicts between these guidelines and Memorandums of Agreement (MOA) with employee associations, the MOA will apply. If meals are provided without charge at a meeting or while in transit (meals served on a plane, for example), meal costs will not be reimbursed. O INCURRING NON - TRAVEL EXPENSES Special Events. The City will reimburse expenses incurred for such meetings and hospitality as may, from time to time, be determined by the Council to be appropriate. Costs for such special occasions will be determined by specific Council action authorizing such events. Local Meeting and Training Costs. The City will also reimburse expenses you incur in attending meetings or conferences held locally which do not include travel expenditures, subject to the following guidelines: 1. Meals not incurred as part of out -of -area or overnight travel are limited to activities outside of normal duties, such as business- related meetings held before or after regular working hours (including working lunches where this is the only time available) or extended overtime due to special projects or emergencies. 2. Meal reimbursements are not allowed as part of routine daily work assignments or training within City limits, unless part of the registration cost or the meal is served on site as part of the program to keep all participants together and not have them disperse for meals. 301 -7 Packet Pg. 94 Item 7 Travel and Meeting Guidelines 3. Meals incurred during training held outside the City limits are only allowable when the training (including travel time) spans the normal meal period. For example, if training is held outside of the City limits from 9:00 until 10:30 AM at a location that is an hour away from the City, meal costs for lunch would not be reimbursable. However, meal costs for lunch under similar circumstances where the training is held from 9:00 AM to 3:00 PM would be reimbursable. 4. Reimbursement for meal costs in these circumstances are subject to the City's meal cost guidelines for overnight travel. Other Expenses. The City will reimburse you for costs incurred while at a meeting or other function when such costs are directly linked to the program or subject matter of the meeting. Examples of costs that may be borne by the City include printed materials, tapes or other training material that may be available for sale at the meeting. Alcoholic Beverages City funds should not be used to purchase alcohol or reimburse employees for alcohol related costs. The Council or CAO may approve exceptions to this policy on a case -by -case basis for special receptions or other unique circumstances. This discretion applies primarily to non - travel related expenditures such as special receptions, and not to routine travel or meetings by City employees. Spouses and Guests Spouses and guests are welcome to accompany you on City travel and at conferences, seminars and meetings. However, any additional costs associated with the participation of your spouse or other guests are your responsibility. Exceptions to this policy include the annual League of California Cities dinner and any other occasions as specifically approved by the Council. Guests As Passengers in City Vehicles. Due to liability concerns, non -City employees should not ride as passengers in City vehicles when it is not directly related to City business. However, department heads may approve exceptions on a case -by -case basis, subject to review by the Risk Manager. O ACCOUNTING FOR EXPENSES When you return from your trip or official function, a final accounting of all expenses must be approved by your department head and submitted to Finance within ten working days. An expense report is required in all cases — whether the advance and actual expenses are equal, you are eligible for additional reimbursement or you owe money to the City. 301-8 Packet Pg. 95 Item 7 Travel and Meeting Guidelines The final accounting is made by completing the Travel Expense Report section on the reverse side of the TA. After completing the expense report, you should attach required receipts, sign the report attesting to its accuracy and submit it to your department head for review and approval. If you owe the City for the unused balance of a cash advance, you should pay the amount due to the cashier at your location and attach the cash register receipt to your expense report. A completed Travel Expense Report is required for the employee's vendor file, even when a trip does not have an employee advance or reimbursement because all payments were made via direct voucher or credit card. Department heads approving expense reports are responsible for ensuring that: I . All expenses are reasonable, necessary and consistent with these guidelines. 2. Any required receipts are attached. 3. The final disposition is correct (balance due employee; balance due City). 4. Any amounts due to the City are reimbursed. 5. Final accounting of all expenses is submitted to Finance. Upon approval by your department head, the expense report should be processed as follows depending upon the circumstances: If the City Owes You The expense report should be forwarded to Finance along with a voucher request for payment to you; the reimbursement will be processed on the next check register. If You Owe the City The expense report should be forwarded to Finance with the cash register receipt attached evidencing payment of the amount due. Processing Related Vouchers All travel related costs require payments to vendors via vouchers, whether it is direct payments to vendors (such as to the conference provider for registration or hotel for lodging), credit payments or reimbursements to employees. To ensure appropriate documentation for all such payments, copies of the TA or Travel Expense Report must accompany all vouchers as follows: 1. Vouchers Processed Before Travel Occurs. The TA must be attached to all related vouchers. 2. Vouchers Processed After Travel Occurs. The Travel Expense Report must be attached to all related vouchers. Note: When CAO approval is required, documentation of this must also be attached to all related vouchers. 301 -9 Packet Pg. 96 Item 7 Travel and Meeting Guidelines 0 COMPLETING TRAVEL AUTHORIZATIONS AND EXPENSE REPORTS The following charts and tables provide an overview of the City's travel procedures, instructions for completing the TA and Expense Report forms, and completed samples. Approved by the Council on November 14, 2006 (Resolution No. 9850) 301 -10 Packet Pg. 97 Item 7 0 C Travel and Meetinq Guidelines OVERVIEW OF TRAVEL PROCEDURES Traveler . Consult with Department Head on the need for travel. Plan itinerary, transportation & lodging. Complete Travel Authorization (TA); attach vouchers for employee cash advance (if needed) and each direct vendor payment requested. Department Head • Review TA for conformance with City travel STEP 1 guidelines and department priorities. Travel Authorization • Verify that adequate funding exists in the appropriate travel budget to cover all costs. Approve TA, provide a copy to the employee and submit to Finance for payment processing. Finance • Make cash advance and vendor payments. File TA in employee's vendor file. Traveler • Complete and submit expense report section of the TA accounting for all expenses to the Department Head within 10 working days after completion of travel. Attach any required receipts. Sign report attesting to its accuracy. Pay cashier at your location and attach cash register receipt if a balance is due to the City. STEP 2 Department Head • Review expense report for conformance with City Expense Reporting travel guidelines. Verify accuracy of balances and disposition. Approve expense report, make a copy for departmental records and submit to Finance; attach voucher request if funds are due to the employee. Finance • File expense report in employee's vendor file and process any payment due to the employee if requested. 301 -11 Packet Pg. 98 Item 7 Travel and Meeting Guidelines COMPLETING THE TRAVEL AUTHORIZATION OVER The Travel Authorization (TA) form should be prepared whenever the total estimated cost of travel is more than $200 or overnight lodging is required. The TA is a two -sided form: the front side provides for approval of the travel, summarizes the cost and provides documentation for any cash advance to the employee and direct payments to vendors; the reverse side is for reporting actual expenses within 10 days after travel is completed and reconciling. Completing the form itself is largely self- explanatory, and a completed sample is provided for your information. The following highlights key areas of the TA form: Appropriate vouchers, purchase orders or credit card requests should be attached to the TA when it is submitted to Finance for processing. 4. Itinerary. Summarizes when and where the employee will be traveling. 5. Approvals. Provides a signature box for the employee and approval by the Department Head. Out -of -state travel requires the further approval of the CAO. TRAVEL EXPENSE REPORT:. SIDE 2 For reporting actual expenses upon completion of travel and reconciling this amount to any cash advance received, the reverse side of the TA is organized into four major sections: TRAVEL AUTHORIZATION: SIDE 1 1. Actual Expense Detail. Itemizes actual expenses by type for each day of your trip The front side of the TA is organized into five (spaces are provided for dates and expense major sections: categories not pre - listed). 1. General Information. Identifies who is 2. Mileage Detail: Personal Vehicle. going, where the meeting or conference will Summarizes miles and cost if you were be held, how long the employee will be authorized to use a personal vehicle for the gone, how much it will cost, and the account trip. number that should be charged. 2. Purpose. Describes the reason for the trip. 3. Cost and Payment Summary. Outlines the estimated cost of the trip by expense type registration, transportation, lodging, meals; spaces are provided to add categories not pre - listed), vendors to whom payment will be made .(including cash advances to the employee), method of payment (voucher, purchase order, credit card), and amount. A summary is then provided of the payments to be made to the employee, vendors, or by credit card. 301 -12 3. Travel Expense Summary. Totals expenses for the trip and reconciles them with any cash advance received, resulting in either a balance due to the employee or due to the City. 4. Approvals. Provides a signature box for the employee and approval by the Department Head (and CAO if required). Packet Pg. 99 Item 7 C Travel and Meetinq Guidelines city of san Luis osispo N TRAVEL AUTHORIZATION 14 This form should be completed in legible handwriting or in Excel using the Ci i''s standard template Employee Department lPosition James Logan Finance Finance Manager Destination No. of Days I Account No. Amount Fresno 3 1 100.25140.7459 475.00 PURPOSE Attend seminarsponsored by the GFOA on new financial reporting model GASB 34). COST SUMMARY Description Vendor Payment Method Amount Registration GFOA Voucher 195.00 Air Fare 1015 - 5 PM San Luis Obisp 1085 - 8 PM Lodging Holiday Inn Credit card 185.00 Meals Employee Voucher 75.00 Mileage - Personal Vehicle Gasoline - City Vehicle Service Station Credit card 20.00 Rental Car TOTAL 475.00 ITINERARY Departure Daternme Arrival Daternme San Luis Obispo 10/ 3 - 9:00 AM Fresno 10/3 - Noon Fresno 1015 - 5 PM San Luis Obisp 1085 - 8 PM SaratEfspeth 9/ 17/2003 1 jawmlimO 9/18/2003 n9 •>;y Employee I Date Isupervisor Date Jam fc4m 1 9/15/2003 2ufia7fernandez 9/16/2003 Department Head I Date CAO Of Required) Date SaratEfspeth 9/ 17/2003 1 jawmlimO 9/18/2003 Use the reverse side of this form for reporting actual expenses within 10 working days after your return. 301 -13 Packet Pg. 100 Item 7 Travel and Me C J Guidelines city of san Luis osispo TRAVEL EXPENSE REPORT This form should be completed in legible handwriting or in Excel using the City's standard template TRAVEL EXPENSE DETAIL sail? (e Description Date TOTAL10/3 10/4 1015 T 75.00 138 Registration 195.00 138 195.00 Air Fare Standard mileage tables provided in the Ci v's irm -e/ Total Miles - Personal Vehicle guidelines in" be used in lieu of odometer readings Reimbursement Q $0.360 per mite 276 99.36 Lodging 96.25 96.25 192.50 Breakfast 10.00 10.00 20.00 Lunch 15.00 15.00 Dinner 25.00 22.59 47.59 Gasoline Rental Car Parking 10.00 10.00 20.00 Telephone 1.50 2.25 0.75 4.50 Downtown Shuttle 1.00 1.00 2.00 Included in registration Receipts most be attachedfor all lodging expenses and any individual expenses in excess of 825. MILEAGE DETAIL - PERSONAL VEHICLE TOTAL 1 $496.59 De arture/Destination Odometer Readin s Trip MilesStartingMileageEndingMileage San Luis Obispo to Fresno (Per Standard Mileage) Cash Advances to Employee 75.00 138 Fresno to San Luis Obispo 138 Standard mileage tables provided in the Ci v's irm -e/ Total Miles - Personal Vehicle guidelines in" be used in lieu of odometer readings Reimbursement Q $0.360 per mite 276 99.36 By signing this expense report, Ilse employee certifies that the amounts listed were incurred in conformance with the City's travel guidelines and that no part is claimed for reimbursement of a personal nature. TRAVEL EXPENSE SUMMARY Total Travel Expenses 595.95 Voucher /Credit Card Purchases 387.50 Cash Expenses Paid By Employee 208.45 Cash Advances to Employee 75.00 Amount Due Employee (City) 133.45 Emplo eee I Date IDepartment Head Date jam fqjim 10/14/2003 SaradEhpeth 10/15/2003 301 -14 Packet Pg. 101 Item 7 Travel and Meeting Guidelines iillallll'j IIIIIiIII; Clty OfA;I, San WIS OBISPO 990 Palm Street San Luis Obispo, CA 93401 CLAIM FOR EXEMPTION FROM TRANSIENT OCCUPANCY TAX The undersigned claims exemption from paying city transient tax charged for the period from through . The undersigned claims this exemption for who is on official business as an employee of the City of San Luis Obispo. NOTE: Operators of hotels should not accept this application unless the person presenting it shows satisfactory identification. A separate application is required for each occupancy period. I declare under penalty of perjury of the laws of the State of California that the foregoing is true and correct: Signature ofAuthorizing Official] Sara Elspeth, Date Director of Department The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781 -7410. 301 -15 Packet Pg. 102 Item 7 7A/ 7- Z lltllt=l (1/1- Z- I 'I'D Packet Pg. 103 Item 7 Page intentionally left blank. Packet Pg. 104 Item 7