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HomeMy WebLinkAbout2006-04-04; City Council; 18508; Revision of City Travel PolicyCITY OF CARLSBAD - AGENDA BILL AB# 18.508 MTG. 04-04-06 DEPT. FINANCE TITLE: REVISION OF CITY TRAVEL POLICY DEPT HD. CITY ATTY, CITY RECOMMENDED ACTION: Adopt Resolution No.2006-081 approving the City's travel policy. ITEM EXPLANATION: Occasionally, it is necessary for City personnel to attend meetings, travel outside the City to conduct City business, and attend conferences, seminars and training sessions. Various modes of transportation are available and other associated costs vary considerably. A Travel Policy has been developed to help control the costs involved with traveling, and to compensate individuals for actual necessary expenses related to travel and meetings. The last revision to the Travel Policy was done in December 1999. Two laws were passed by the State legislature this year that affect the amount and manner of City Council compensation and expense reporting. Assembly Bill (AB) 11 sets forth compensation limits, while AB 1234 sets forth ethical responsibilities and reimbursement limitations. Effective January 1, 2006, California Code Section 53232.3 of AB 1234 mandates that members of a legislative body must submit expense reports "within a reasonable time period after incurring the expense", and the reports "shall be accompanied by the receipts documenting each expense." This change affects the City's current Travel Policy, as the City currently does not require receipts for any expenses less than $5.00, and for any meal that is less than $75.00 if the City Council member identifies the amount of the expenditure, the date and place of the expenditure, the business purpose of the expenditure, and the business relationship to the person entertained, as well as the individuals' names. Therefore, in accordance with AB 1234, the Travel Policy has been modified, requiring City Council members to submit receipts for each item listed on their expense report, even if the additional information is documented on the report. FISCAL IMPACT: The recommended changes should have no fiscal impact on the City. EXHIBITS: 1. Resolution No. 2006-081adopting a revised City Travel Policy. 2. Revised City Travel Policy. 3. Revised City Travel Policy marked to show changes from current policy. DEPARTMENT CONTACT: Kevin Branca (760) 602-2430; kbran@ci.carlsbad.ca.us Exhibit 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2006-081 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REVISING THE CITY'S TRAVEL POLICY WHEREAS, City Council last revised the Travel Policy on December 14,1999; and WHEREAS, the City Council may from time to time revise this policy as may be necessary to provide proper guidance to City personnel; and WHEREAS, State Assembly Bill 1234 was passed this year that affects reimbursement of expenses to City Council members. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The attached Travel Policy, revised April 4, 2006, (Exhibit 2) is hereby adopted and shall become effective immediately. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 4th day of April 2006, by the following vote, to wit: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None , City Clerk (SEAL) Exhibit 2 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: Specific Subject: TRAVEL POLICY Policy No. 2 (Page 1 of 5) Date Issued 04/04/06 Effective Date 04/04/06 Cancellation Date Supersedes No. 3 (Dated 12/14/99) Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File PURPOSE: To establish a policy to be followed by Council Members, other elected officials, commission/board members, and all City employees when traveling on City business. This policy supersedes all other travel policies. BACKGROUND: Occasionally, it is necessary for City personnel to attend meetings, travel outside the City to conduct City business, and attend conferences, seminars and training sessions. Various modes of transportation are available and other associated costs vary considerably. The City Council has adopted a policy to control the costs involved, and to compensate individuals for actual necessary expenses related to travel and meetings. DEFINITIONS: City Business Travel shall be defined as travel which requires elected officials, members of a commission or board, or City employees to conduct specific items of City business away from their normal place of business. City Employee means any person regularly employed by the City, excluding elected officials and members of commissions, committees, authorities or boards. Commissioner shall mean any person appointed by the City Council to an established board, committee, authority or commission. Out-of-State Travel includes all costs related to business travel outside the State of California. In-State Travel includes all costs related to business travel within the State of California. Miscellaneous Meals/Mileage includes all miscellaneous costs not directly attributable to conferences or training, such as travel to other City facilities. 3 Exhibit 2 CITY OF CARLSBAD Policy No. 2 (Page 2 of 5) COUNCIL POLICY STATEMENT Date Issued 04-04-06 Effective Date 04-04-06 General Subject: TRAVEL POLICY Cancellation Date Supersedes No. 3 (Dated 12/14/99) Specific Subject: Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File POLICY IN GENERAL: 1. Requests for travel shall, in all cases, be limited to situations from which the City will derive a benefit through the attendance of a representative. 2. For City Council Members, all travel involving more than five (5) days should be approved in advance by the Council. Travel of five (5) days or less need not have prior approval if funds are available in the current budget. The Mayor is authorized to approve extended overnight travel for emergency cases. 3. Except for elected officials, commissioners and board members, and Council appointed employees, the number of City employees attending any single conference should be limited to those whose attendance will provide a benefit to the City. Any number of elected officials, commissioners, or Council appointed employees may attend conferences provided that funds are available for such purposes. 4. The City Manager, or his/her designee, may approve any in-state travel, travel specifically approved in the operating budget, and any travel for educational purposes. The City Manager (or his/her designee) may also authorize out-of-state travel for unanticipated purposes if funds are available and the subject travel has a duration of two days or less (one night's stay). Unanticipated out-of-state travel for a duration exceeding two days must be authorized by the City Council. 5. Each officer, employee, advisory commissioner, and board member of the City is expected to be as thrifty and prudent as possible when traveling at the City's expense. To ensure that City officers, employees, commissioners and board members are able to travel when necessary to accomplish essential City business, travel funds must be expended in the most economical and efficient way possible. 6. Receipts are required for all business travel expenses such as transportation, lodging and incidental costs exceeding five ($5) dollars except for the City Council, where receipts are required for every item to be reimbursed. In order to comply with IRS and State Regulations, receipts are required for all meal and entertainment expenses for City Council Members. In addition, for all travel expenses for other City employees (including meals and entertainment), the following information must appear on the expense report and/or the receipts submitted: a. The amount of the expenditure. b. The date and place of the expenditure. c. The business purpose of the expenditure. d. The business relationship to the person entertained, as well as the individuals' names. U Exhibit 2 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: TRAVEL POLICY Specific Subject: Policy No. 2 (Page 3 of 5) Date Issued 04-04-06 Effective Date 04-04-06 Cancellation Date Supersedes No. 3 (Dated 12/14/99) Copies to:City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File POLICY IN GENERAL (Continued): The IRS also requires that if the expenditures are not substantiated with the above information, they may be considered "wages" subject to payroll tax withholding. The use of a City credit card for payment of business meals and entertainment does not preclude the requirement to complete and submit an expense report. 7. Travel advances to City employees need to be substantiated or reimbursed as soon as possible upon completion of trip (normally within 30 days). If the expense report is not filed timely, any travel advances may be subtracted from the employee's payroll check. No further City funds will be advanced for travel until the employee files his/her outstanding expense report. 8. Administration of this policy will be as directed from time to time by the City Manager. TRANSPORTATION: 1. Use of air, train, private automobile, or other mode of public transportation shall be selected on the basis of the least total cost to the City after all expense items are tabulated, including travel time salary costs. 2. When the use of a private automobile to destinations within 200 miles of the City limits is approved, mileage reimbursement shall be at the rate then currently prescribed by IRS regulations. Individuals with an auto allowance will not receive mileage reimbursements for trips within 200 miles of the City limits. However, use of City-owned vehicles is allowed for travel within 200 miles of the City limits. If use of a private automobile to destinations beyond 200 miles is approved by the City Manager or his/her designee, including those individuals with an auto allowance, reimbursement shall not exceed the cost of a round trip coach or equivalent class air fare. Exceptions are subject to approval by the City Manager or his/her designee (such as in cases where required items to be transported are not allowed on any mode of public transportation). Such reimbursement shall be computed based on the mileage from the normal work location to the final destination. For the purpose of determining personal vehicle mileage reimbursement, the designated normal work location for each City employee is the place where that employee spends the largest portion of his/her regular workday or working time, or the place to which he/she returns upon completion of regular or special assignments. The cost of the daily commute to the office is the employee's responsibility. 3. When the use of public air carrier is approved, the City shall pay the lowest available fare at the time the reservation is booked. Upgrades to a higher class of air service will be at the employee's expense. Exhibit 2 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: TRAVEL POLICY Specific Subject: Policy No. 2 (Page 4 of 5) Date Issued 04-04-06 Effective Date 04-04-06 Cancellation Date ______ Supersedes No. 3 (Dated 12/14/99) Copies to:City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File TRANSPORTATION (Continued): 4. Authorized travel time shall be based on that required by the most appropriate and expedient mode of public transportation. The additional travel time will not be considered City work hours. 5. While traveling, employees are encouraged to use public transportation whenever possible. For example, courtesy shuttle service, buses, taxis, or limousine service should be utilized between airports and meeting locations when such services are reasonably available. Rental vehicles should be used when other transportation is unavailable, untimely, or a rental vehicle is the most economical mode of transportation. 6. Reimbursement for travel time will be made in accordance with FLSA guidelines. LODGING: 1. Lodging shall be obtained at the most economical rate available for good quality lodging. When there is an officially designated conference hotel, the traveler is encouraged to take advantage of these accommodations. Lodging expenses for spouses are not reimbursable, and any additional expenses must be paid by the elected official, commissioner or employee. 2. Business related telephone charges which are added to the lodging bill may be reimbursed. Reimbursement of personal calls will be allowed in an amount not to exceed the higher of $10.00 per day or ten minutes of phone time. Reimbursement of personal calls in excess of this limit maybe authorized by the City Manager or his/her designee, under special circumstances. MEALS AND INCIDENTAL EXPENSES: 1. Notwithstanding other limits stated elsewhere, the City Council will be reimbursed the actual costs of meals, plus tips and incidental expenses that are substantiated with a physical receipt while on official City business. 2. Each commissioner or employee authorized to travel may submit the actual cost of meals, tips and incidental expenses for reimbursement up to a limit of $50 per day. If it is anticipated that this limit will be exceeded, then prior approval by the City Manager or his/her designee is required. The City Manager may approve such additional expenditures, within the limits of his/her expenditure authority, as necessary. Exhibit 2 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: TRAVEL POLICY Specific Subject: Policy No. 2 (Page 5 of 5) Date Issued 04-04-06 Effective Date04-04-06 Cancellation Date Supersedes No. 2_(Dated 12/14/99) Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File MEALS AND INCIDENTAL EXPENSES (Continued): 3. The City will not reimburse the cost of alcoholic beverages. 4. Reasonable amounts for tipping will be reimbursed, however, reimbursement for tips will not be made in excess of 20%. Exhibit 3 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: Specific Subject: TRAVEL POLICY Policy No. 2 (Page 1 of 5) Date Issued 12/14/9904/04/06 Effective Date 12/14/99 04/04/06 Cancellation Date Supersedes No. £- 3 (Dated Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File PURPOSE: To establish a policy to be followed by Council Members, other elected officials, commission/board members, and all City employees when traveling on City business. This policy supersedes all other travel policies. BACKGROUND: Occasionally, it is necessary for City personnel to attend meetings, travel outside the City to conduct City business, and attend conferences, seminars and training sessions. Various modes of transportation are available and other associated costs vary considerably. The City Council has adopted a policy to control the costs involved, and to compensate individuals for actual necessary expenses related to travel and meetings. DEFINITIONS: City Business Travel shall be defined as travel which requires elected officials, members of a commission or board, or City employees to conduct specific items of City business away from their normal place of business. City Employee means any person regularly employed by the City, excluding elected officials and members of commissions, committees, authorities or boards. Commissioner shall mean any person appointed by the City Council to an established board, committee, authority or commission. Out-of-State Travel includes all costs related to business travel outside the State of California. In-State Travel includes all costs related to business travel within the State of California. Miscellaneous Meals/Mileage includes all miscellaneous costs not directly attributable to conferences or training, such as travel to other City facilities. Exhibit 3 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: TRAVEL POLICY Specific Subject: Policy No. 2 (Page 2 of 5) Date Issued 12/14/9904-04-06 Effective Date 12/14/9904-04-06 Cancellation Date _ Supersedes No. 2—3 (Dated Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File POLICY IN GENERAL: 1. Requests for travel shall, in all cases, be limited to situations from which the City will derive a benefit through the attendance of a representative. 2. For City Council Members, all travel involving more than five (5) days should be approved in advance by the Council. Travel of five (5) days or less need not have prior approval if funds are available in the current budget. The Mayor is authorized to approve extended overnight travel for emergency cases. 3. Except for elected officials, commissioners and board members, and Council appointed employees, the number of City employees attending any single conference should be limited to those whose attendance will provide a benefit to the City. Any number of elected officials, commissioners, or Council appointed employees may attend conferences provided that funds are available for such purposes. 4. The City Manager, or his/her designee, may approve any in-state travel, travel specifically approved in the operating budget, and any travel for educational purposes. The City Manager (or his/her designee) may also authorize out-of-state travel for unanticipated purposes if funds are available and the subject travel has a duration of two days or less (one night's stay). Unanticipated out-of-state travel for a duration exceeding two days must be authorized by the City Council. 5. Each officer, employee, advisory commissioner, and board member of the City is expected to be as thrifty and prudent as possible when traveling at the City's expense. To ensure that City officers, employees, commissioners and board members are able to travel when necessary to accomplish essential City business, travel funds must be expended in the most economical and efficient way possible. 6. Receipts are required for all business travel expenses such as transportation, lodging and incidental costs exceeding five ($5) dollars except for the City Council, where receipts are required for every item to be reimbursed, hi order to comply with IRS and State Regulations, receipts are required for all meal and entertainment expenses for Citv Council Members, in excess of $75 per meal or item In addition, for all travel expenses for other City employees (including meals and entertainment), the following information must appear on the expense report and/or the receipts submitted: a. The amount of the expenditure. b. The date and place of the expenditure. c. The business purpose of the expenditure. d. The business relationship to the person entertained, as well as the individuals' names. <\ Exhibit 3 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: TRAVEL POLICY Specific Subject: Policy No. 2 (Page 3 of 5) Date Issued 12/14/9904-04-06 Effective Date 12/14/9904-04-06 Cancellation Date _ Supersedes No. 2—3 (Dated Copies to:City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File POLICY IN GENERAL (Continued): The IRS also requires that if the expenditures are not substantiated with the above information, they may be considered "wages" subject to payroll tax withholding. The use of a City credit card for payment of business meals and entertainment does not preclude the requirement to complete and submit an expense report. 7. Travel advances to City employees need to be substantiated or reimbursed as soon as possible upon completion of trip (normally within 30 days). If the expense report is not filed timely, any travel advances may be subtracted from the employee's payroll check. No further City funds will be advanced for travel until the employee files his/her outstanding expense report. 8. Administration of this policy will be as directed from time to time by the City Manager. TRANSPORTATION: 1. Use of air, train, private automobile, or other mode of public transportation shall be selected on the basis of the least total cost to the City after all expense items are tabulated, including travel time salary costs. 2. When the use of a private automobile to destinations within 200 miles of the City limits is approved, mileage reimbursement shall be at the rate then currently prescribed by IRS regulations. Individuals with an auto allowance will not receive mileage reimbursements for trips within 200 miles of the City limits. However, use of City-owned vehicles is allowed for travel within 200 miles of the City limits. If use of a private automobile to destinations beyond 200 miles is approved by the City Manager or his/her designee, including those individuals with an auto allowance, reimbursement shall not exceed the cost of a round trip coach or equivalent class air fare. Exceptions are subject to approval by the City Manager or his/her designee (such as in cases where required items to be transported are not allowed on any mode of public transportation). Such reimbursement shall be computed based on the mileage from the normal work location to the final destination. For the purpose of determining personal vehicle mileage reimbursement, the designated normal work location for each City employee is the place where that employee spends the largest portion of his/her regular workday or working time, or the place to which he/she returns upon completion of regular or special assignments. The cost of the daily commute to the office is the employee's responsibility. 3. When the use of public air carrier is approved, the City shall pay the lowest available fare at the time the reservation is booked. Upgrades to a higher class of air service will be at the employee's expense. 10 Exhibit 3 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: TRAVEL POLICY Specific Subject: Policy No. 2 (Page 4 of 5) Date Issued 12/14/9904-04-06 Effective Date 12/14/9904-04-06 Cancellation Date _ Supersedes No. 2 — 3 (Dated Copies to:City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File TRANSPORTATION (Continued): 4. Authorized travel time shall be based on that required by the most appropriate and expedient mode of public transportation. The additional travel time will not be considered City work hours. 5. While traveling, employees are encouraged to use public transportation whenever possible. For example, courtesy shuttle service, buses, taxis, or limousine service should be utilized between airports and meeting locations when such services are reasonably available. Rental vehicles should be used when other transportation is unavailable, untimely, or a rental vehicle is the most economical mode of transportation. 6. Reimbursement for travel time will be made in accordance with FLSA guidelines. LODGING: 1. Lodging shall be obtained at the most economical rate available for good quality lodging. When there is an officially designated conference hotel, the traveler is encouraged to take advantage of these accommodations. Lodging expenses for spouses are not reimbursable, and any additional expenses must be paid by the elected official, commissioner or employee. 2. Business related telephone charges which are added to the lodging bill may be reimbursed. Reimbursement of personal calls will be allowed in an amount not to exceed the higher of $10.00 per day or ten minutes of phone time. Reimbursement of personal calls in excess of this limit may be authorized by the City Manager or his/her designee, under special circumstances. MEALS AND INCIDENTAL EXPENSES: 1. Notwithstanding other limits stated elsewhere, the City Council will be reimbursed the actual costs of meals, plus tips and incidental expenses that are substantiated with a physical receipt while on official City business. 2. Each commissioner or employee authorized to travel may submit the actual cost of meals, tips and incidental expenses for reimbursement up to a limit of $50 per day. If it is anticipated that this limit will be exceeded, then prior approval by the City Manager or his/her designee is required. The City Manager may approve such additional expenditures, within the limits of his/her expenditure authority, as necessary. Exhibit 3 CITY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: TRAVEL POLICY Specific Subject: Policy No. 2 (Page 5 of 5) Date Issued 12/14/9904-04-06 Effective Date 12/14/9904-04-06 Cancellation Date Supersedes No. 2 (Dated Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File MEALS AND INCIDENTAL EXPENSES (Continued): 3. The City will not reimburse the cost of alcoholic beverages. 4. Reasonable amounts for tipping will be reimbursed, however, reimbursement for tips will not be made in excess of 20%.