HomeMy WebLinkAboutR-10913 Amending City Travel and Meeting Expense Policy GuidelinesRESOLUTION NO. 10913 (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
as follows:
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.
R 10913
Resolution No. 10913 (2018 Series)
Page 2
SECTION 2. Resolution Number 9850 (2006 Series) is hereby superseded to the extent
inconsistent herewith.
Upon motion of Council Member Pease, seconded by Vice Mayor Christianson, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 10th day of July 2018.
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this .11-4,-" day of
A
Teresa Purrington
City Clerk
R 10913
Resolution No. 10913 (2018 Series)
Exhibit A
93
Travel & Meeting Expense Policy
October 2018 (Updated)
CITYOF
SHIR LLLIS OBISPO
Resolution No. 10913 (2018 Series)
Exhibit A
4
Contents
Section301................................................................................................................................................1
TRAVEL & MEETING EXPENSE POLICY.......................................................................................................1
OVERVIEW.........................................................................................................................................1
ACTIVITIES CONSTITUTING AUTHORIZED EXPENSES...........................................................1
GENERAL STANDARDS & ALLOWABLE EXPENSES..........................
...................................... 2
TRAVELAUTHORIZATIONS...........................................................................................................5
REQUESTS FOR CASH ADVANCE AND PAYMENTS TO VENDORS
....................................... 6
ADDITIONAL CONSIDERATIONS..................................................................................................7
ACCOUNTINGFOR EXPENSES.......................................................................................................8
Section350................................................................................................................................................1
MILEAGE REIMBURSEMENT RATE............................................................................................................1
Section351................................................................................................................................................1
AUTHORIZATION DURING TRAVEL CHILL..................................................................................................1
Resolution No. 10913 (2018 Series) 5
Exhibit A
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 & Payments to Vendors
S. 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.
Adaption 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 C ity 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
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Resolution No. 10913 (2018 Series) 6
Exhibit A
adopted policy positions.
■ Serving on professional organization or governmental committees, boards 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
I.I. 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
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Resolution No. 10913 (2018 Series)
Exhibit A
7
starting point to end destination.
If driving 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.
encies (such as
■ Because of reimbursement dermentads may limitations author ze lower er meal allowancesOthanstipulated above.
get
constraints, department Y
■ 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.
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Resolution No. 10913 (2018 Series)
Exhibit A
8
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. Ifthe 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 forth 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
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Resolution No. 10913 (2018 Series) 9
Exhibit A
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 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.
■ 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
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Resolution No. 10913 (2018 Series) 10
Exhibit A
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.
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Resolution No. 10913 (2018 Series)
Exhibit A
11
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 I -ravel 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 lees, 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
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Resolution No. 10913 (2018 Series)
Exhibit A
12
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:
I . 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.
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Resolution No. 10913 (2018 Series)
Exhibit A
13
gram, the City reimburses employees for using their
Under the City's fleet management pro
personal car in conducting City business at the current IRS approved rate listed at www.irs.gov.
er mile reimbursement rate reflects
Consistent with the IRS basis in setting this rate, the City's p
all costs associated with operating a vehicle, such as depreciation, lease payments, maintenance,
repairs, fuel, oil, insurance (including deductibles) and vehicle registration fees
Page: 301-1
Resolution No. 10913 (2018 Series)
Exhibit A
14
Objectives to be met to obtain authorization when a travel chill is in effect:
M 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
Page: 351-1