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HomeMy WebLinkAboutStaff Report 166-06C Py of Palo Manager’s TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: SUBJECT: MARCH 13, 2006 CMR: 166:06 ADOPTION OF REVISED CITY COUNCIL AND BOARDS AND COMMISSION MEMBERS TRAVEL AND MISCELLANEOUS EXPENSE REIMBURSEMENT POLICY RECOMMENDATION Staff recommends that Council approve: 1.The revised City Council and Boards and Commission Members Travel and Miscellaneous Expense Policy; and, 2.Resolution of the Council of the City of Palo Alto Amending the Expense Reimbursement Policy for City Council Members, Board Members, and Commissioners. BACKGROUND On January 1, 2006 Assembly Bill (AB) 1234 went into effect. This bill requires a governing body to adopt or revise a written policy concerning which occurrences qualify members to receive reimbursements of expenses for travel, meals and lodging. It imposes related requirements, including filing of expense reports, which become public record. It also eliminates stipends payments for meeting expenses, since there is no accountability built in to this process. In addition, the new law requires elected officials and officials that serve on boards or commissions subject to the Brown Act to take two hours of ethics training every two years if they receive compensation or are reimbursed expenses. In July 1995, Council adopted a Travel, Conference and Miscellaneous Expense Policy for City Council Members. In accordance to the new law, staff amended (redlined) the Policy (Exhibit A). The current policy addresses most of the requirements of AB 1234; therefore, the City has been in compliance since January 2006. However, the policy must be amended to address expenses not included in the current policy and to include boards and commission members and their existing compensation. CMR: 166:06 Page 1 of 3 DISCUSSION The emphasis of the new law is for reimbursements to be based on actual and necessary expenses incurred in the performance of official duties. Some of the key changes in the revised policy include: ¯Requirement to only reimburse for expenses included in the Council-approved Policy ¯Requirement to set limits on reimbursements ¯Inclusion of board and commission members in policies ¯Lodging reimbursement to be limited to highest group or governmental rates ¯Officials provide a brief report on meetings attended at the expense of the local agency at the next meeting ¯Officials submit expense reports that are subject to public record request ¯Biannual ethics training requirement ¯Penalties for misuse of public resources or falsifying expense reports in violation of expense reporting policies ¯Loss of reimbursement privileges in case of misuse ¯Civil penalties for misuse of public resources ¯Prosecution for misuse of public resources, pursuant to Section 424 of the California Penal Code ¯Elimination of stipend payments for meeting expenses Staff will work with officials on the ethics training plan to ensure compliance by January 2007. POLICY IMPLICATIONS The recommended changes will comply with AB 1234 and amend the current Council Travel and Miscellaneous Expense Policy. RESOURCE IMPACT The financial resources budget. required to implement thepolicies are contained within the current ENVIRONMENTAL REVIEW There are no direct environmental impacts PREPARED BY: DEPARTMENT HEAD APPROVAL: LALO PERE2 Assistant Director, Administrative Services CARL YEATS/ Director, Admi~strative Services CMR: 166:06 Page 2 of 3 CITY MANAGER APPROVAL: City Manager ATTACHMENTS Attachment A: Resolution Exhibit A: City of Palo Alto City Council and Boards and Commissions for Travel Policy Attachment B: Policies and Procedures 1-02: Travel Policy CMR: 166:06 Page 3 of 3 ATTACHMENT A RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE EXPENSE REIMBURSEMENT POLICY FOR CITY COUNCIL MEMBERS,BOARD MEMBERS,AND COMMISSIONERS WHEREAS, the City Council, to assure that public resources, in the form of City funds, are only used to reimburse expenses of public officials when the activity being supported is of public benefit, has previously adopted a policy for the reimbursement of travel, conference, and miscellaneous expenses for council members, and the City Manager has previously issued Policy 1-02 defining eligible reimbursable expenses and payment limitations; and WHEREAS, the City’s existing expense reimbursement policies and practices on reimbursement of Council Members conform to the substantive requirements of Government Code Section 53232.2; and WHEREAS, Government Code Section 53232°2 requires that the City Council adopt an expense reimbursement policy for its boards and commissions to supplement the existing regulations established by the City’s Policies and Procedures and budget; and NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION i. The City of Palo Alto City Council and Boards and Commissions Policy for Travel and Miscellaneous Expense Reimbursement (March 2006) attached to this resolution as Exhibit A is hereby approved and adopted. // // // // // 060308 syn 0091659 SECTION 2. under the California Environmental Quality Act and, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: The Council finds that this is not a project therefore, City Clerk APPROVED AS TO FORM: Mayor APPROVED: Senior Asst. City Attorney City Manager Director of Administrative Services 060308 syn 0091659 2 EXHIBIT A CITY OF PALO ALTO CITY COUNCIL AND BOAP~5 AND CO~,DcH$SION$ POLICY FOR TRAVEL, CON~P.ENCE AND MISCELLANEOUS EXPENSE REIMBURSEMENT March 2006 GENERAL CONSIDERATIONS This policy is set by the City Council and applies only to Council Members, and to Board and Commissions members, who will be referred to as "Officials" in this policy. In reimbursing travel and miscellaneous expenses, *~-..~, ....... ~,.--.~-.--1 :"a!e of !aw ~o ~° *~--*..... a municipal purpose requiring the expenditure of public funds must be in evidence; also, in accord with the Charter and Municipal Code, such expenditures must be from authorized appropriations. EL~G~LE ACTIVITIES The following activities ("Eligible Activities") are recognized by the Council as advancing municipal purposes and are eligible for expense reimbursement, subject to limitations on activities and specific and total expenditures described elsewhere in this policy: I. Communicating with representatives of regional, state and national government on adopted city policy positions; 2. Attending educational seminars designed to improve officials’ skill and information levels; 3. Participating in regional, state and national organizations whose activities affect the city’s interests; 4. in collaboration with city staff, implementing a city-approved strategy for attracting or retaining businesses to the city. All other expenditures require prior approval by the city council at a regular or special meeting. OUT-OF-TOWN CONFERENCES OR MEETINGS Reimbursement All General Fund payments for travel and meetings shall be on the basis of either reimbursement of expenses advanced by the Council Member/Official or payments made directly to travel agencies/websites, hotels, airlines or the organization sponsoring the meeting. All requests for payments or reimbursements must be accompanied by supporting vouchers, invoices or paid detailed receipts and a copy of descriptive literature about the conference or meeting. The Mayor or Chair for Officials ~ must approve, in advance, individual Cc.unail Member travel requests for out-of-town meetings and conferences, e.g., Annual League of California Cities Conference, ~National League of Cities Conference, etc., including Eligible Activities. Allowable expenses for local or Bay Area Eligible Activities do not require prior approval by the Mayor or Chair. The total reimbursement shall not exceed the budget adopted by the Council for this purpose. All reimbursements shall comply with the limits of Policy and Procedures 1-02 (Citywide Travel Policy). Expense reports should be submitted within 30 days of end of trip. Inability to provide such documentation in a timely fashion may result in expense being borne by the Council Member or Official. Meals and Incidentals Notwithstanding the preceding general policy regarding reimbursement, a Council Member or Official may submit a payment request (supported by conference literature) for advance payment of meals and incidentals allowance according to the Internal Revenue Service authorized mileage reimbursement rate and payment for meals and incidentals consistent with City Policy and Procedures 1-02. If the amount advanced is exceeded, additional reimbursement may be requested upon return fi’om the meeting. Requests for additional reimbursement must be supported by a detailed report and receipts for all meals and incidentals. The Mayor shall pre-approve additional reimbursements, and if the expenses are determined to be excessive, they may not be approved. Lodging Expense Reimbursement or payment of hotel bills will be limited to o.~.,~o~,~ .^. ,~.~ .... accv:r..-.,v, datic, n~ the highest group or governmental rate available and will cover omty room charges, applicable taxes and any other item listed in this policy for the Council Member or Offici!l.....,.~-’~ ..~,~_.....~.,.o"~"~’~o "~,.,..~,, .... Telephone calls to Palo Alto City Hall may be made collect. Other charges on the bill such as extra guests and the like are not reimbursable. Transportation 1. Air Transportation: Reimbursement or payment will be limited to economy class commercial air carrier, or an available group travel rate if lower. 2. Private Automobiles: Private automobiles may be used for personal or group transportation on extended trips. Reimbursement shall be made at the rate established by the Internal Revenue Service authorized mileage reimbursement rate consistent with the City Policy and Procedures 1-02. Mileage reimbursement for private automobiles shall not exceed the cost of round trip air transportation (economy class) and rental car, if applicable, or an available group travel rate if lower. 3. Rental Car- economy level only when Couucil Member or Official has ttaveled by airplane out of the Bay A~ea. 4. Shuttle/Taxi - when traveling out of the area. LOCAL OR BAY AREA ACTIVITIES Council Members or Official who have been requested or designated to represent the City may receive the actual cost of: I. Meals, if they are scheduled feature of the activity, e.g.., SCCCA dinner meetings. 2. Registration fees where applicable. 3. Mileage if activity is outside the City (mileage claims should be submitted monthly, with details: date ~, and type of meeting, number of miles traveled to be indicated), consistent with City Policy and Procedures 1-02. 4. Council Members and Officials may be reimbursed by the City for use of a private bicycle to attend local or Bay Area activities outside the City of Palo Alto consistent with City Policy and Procedures 2-9. OTHER EXPENSE8; 1. Airport parking fees, but Counci! Members and Officials must use long-term parking for travel exceeding 24-hours. 2. Meals expenses and associated gratuities must be within the li~nits set in Policy and Procedures 1-02. 3. Telephone/Fax/Cellular expenses will be reimbursed for actual expense incurred on City business. 4. Inter-net Fee - up to $!5 per day, if a Council Member or Official is traveling on officia! business and needs access for City related business. 5. Baggage Handling Fee - up to $3 per bag will be reimbursed. 6. Ethics Training Expenses - AB 1234 requh’es ethics training every two years and such fee and related expenses are eligible for reimbursement. ACTIVITIES NOT CONSIDERED REIMBURSABLE 1. Voluntary attendance at any conference or meeting, not representing the City. 2. Meetings of social or service organizations. 3. Meetings of voter groups or with individual citizens concerned with agenda items. 4. Election campaign activities. 5. Alcohol and entertainment expenses. 6. Personal portion of the trip and other non-mileage automobile expenses. PdgPORTS TO COUNCIL Council Members and Officials shall provide brief verbal reports on meetings attended at the City’s expense at the next regular Council!Board/Commission meeting. If multiple Officials attended, a joint report may be made. All related documents are subject to the Public Records Act and can be periodically reviewed by auditors. VIOLATION OF THiS POLICY Use of public resources or falsifying expense reports is in violation of this policy and may result in any or all of the following: !) Loss of reimbursement privileges 2) A demand for restitution to the City 3) The City reporting the expenses as income to the elected or appointed Official to state and federal tax authorities 4) Civi! penalties of tip to $1,000 per day and three times the value of the resources used 5) Prosecution for misuse of public resources The Mayor shall receive $150 monthly ~’.... .......... ..r,..~.~.~,, and the Vice Mayor $100 monthly ~ to defray additional expenses of these offices. BOAPd)S AND COb’~vtlSSiON COMPENSAT~iON Board/Commission Human Relations Commission Planning and Transportation Commission Architectural Review Board Frequency Amount Quarterly $50.00 Quarterly $120.00 Quarterly $120.00 SUPPORT SERVICES The City Clerk’s Office makes travel arrangements for Council Members. This service includes conference registration, hotel reservations, per diem advances and reimbursement of unforeseen expenses, ~ ~ ":*-’....~: C~erk’~. _ o Office .o :~ requke~ The department liaison for each board and commission will be responsible for arrangements for Officials. ATTACHMENT B POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 INTERIM CITYWIDE TRAVEL POLICY This interim Citywide Travel Policy was created to respond to the City "s current budget situation. This section supersedes the information in the policy related to travel requests and the approval of travel requests. These guidelines will remain in place until further notice. In these difficult economic times, the City must minimize all discretionary expenses, including travel. In spite of this need to cut costs, the City of Palo Alto places a high value on supporting employee growth and development. Continuing education and learning are a key component of that value. The City recognizes the needs of its professional staff to participate in continuing education to maintain required professional standing and certification. It encourages its employees to take a leadership role in regional organizations that address issues of key concern to Palo Alto. Finally, it is important that all employees of the City perceive that the policy for travel and meetings is being applied equitably between the General Fund and Enterprise Fund departments. Given these values, effective immediately: For all travel requests: ¯ Approval by the department head is required. Delegation of this responsibility is not appropriate. ¯Only one person from a department will attend any training or conference, unless the training is related to professional certification. The individual attending will be expected to provide other interested staff with the information garnered at the meeting. ¯Wherever possible, travel should be limited to the Bay Area. Out-of-state travel for meetings should be discouraged. In terms of priorities for approving travel requests: 1. Mandated training or certification for City employees. 2. Travel in the Bay Area 3. Travel required for legal reasons or for legislative advocacy that cannot be accomplished in Palo Alto 4. Travel related to leadership responsibilities in regional, national or international organizations related to City priorities, such as ICMA, LCC, Joint Venture Silicon Valley or the Metropolitan Transportation Commission * 5.Professional conferences in California * 6.National professional conferences * 7.Any other out-of-state travel; such travel must be approved by the City Manager, Assistant City Manager or Council Appointed Officer * Page 1 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 * Employee professional development or tuition reimbursement monies should be used to avoid or offset the City’s contribution to the training, except for training that is mandated or related to maintaining professional certification. The Pre- Travel Authorization Form should indicate expenses that will be paid through employee benefits. Exceptions to this policy must be approved by the City Manager, Assistant City Manager or Council Appointed Officer. Page 2 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 TRAVEL POLICY: TRAVEL ARRANGEMENTS AND EXPENSE REIMBURSEMENTS NOTE: REQUIREMENTS CONTAINED IN THE PRECEDING INTERIM CITYWIDE TRAVEL POLICY SUPERSEDE THIS POLICY UNTIL FURTHER NOTICE POLICY STATEMENT This policy is to assure that City employees and other officials (board and commission members) follow appropriate procedures when arranging for travel, lodging, and other expenses and that they are paid for reasonable expenses incurred for travel, conferences, meetings, and meals as a result of.conducting authorized City business. Also, the intent of this policy is to assure that payments made by the City are for actual and necessary expenses incurred for City business. Employee travel may be authorized for conducting City business at one-day or extended1 activities such as professional meetings, conferences and training sessions. Payments for travel and meeting expenses may be in the form of either prepayments or reimbursement, including appropriate registration fees, food, lodging, transportation costs and reasonable incidental expenses. Specific forms2 and procedures are established for extended travel and meeting reimbursement and for one-day meals and expense reimbursement. Quick reference guides at the end of this policy provide step-by-step guidance in completing the Pre-Travel Authorization Form and Travel Expense Report. Implementation of this policy is the responsibility of the department heads. A department head may designate another staff member of the department to authorize travel and approve reimbursement forms by filing a memorandum documenting the designation with the Accounting Division of the Administrative Services Department. An individual may not authorize or approve reimbursement for his/her own travel; claim forms must be approved by another management employee. Normal accounting and purchasing controls remain the responsibility of the Director of Administrative Services. Any exceptions to this policy must be approved by the City Manager or his/her designee. Temporary or contract employees must receive express authorization in advance from the City Manager or his/her designee for all travel and conferences. ~ For purposes of this policy, "extended" refers to travel of more than one day (where an overnight stay is required). 2 The required forms can be accessed on the City’s U:drive at U/ASD/1 accounting/Accounts payable/TravelPolicy/travelforms.xls or through links from this online policy. Page 3 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 PROCEDURE A.Extended Travel Authorization for Travel Prior to the commitment or expenditure of any City funds for meeting reservations or arrangements, the employee shall obtain approval for the event from the department head or his/her designee. The Pre-Travel Authorization should include an estimate of total expenses, and a copy of the conference or meeting notice and registration forms must be attached. Any special arrangements, such as car rentals, non-standard rooms, or travel routes including side trips or extra days for personal business (i.e., a route that is longer or more expensive than a direct route to the event) should be identified and approved on this form by the City Manager or his/her designee, or by a Council Appointed Officer (CAO). The Pre-Travel Authorization form includes boxes that must be checked by the employee and the department head as follows: Employee’s checkmarks indicate that: Government rates have been requested for hotel and registration, and hotel is asked about exemption for transient occupancy tax -Employee agrees to submit expense report within 30 days -An advance reimbursement has been requested (if applicable) -Professional Development or Tuition Reimbursement funds will be used to reimburse employee for the travel or training (if applicable) Other expenses are included, with supporting documents attached (if applicable) Department Head’s checkmarks indicate that: -Government rates for hotel and registration have been verified -The request complies with the City’s Travel policy and procedures Applicability of using Professional Development Funds has been determined A copy of the Pre-Travel Authorization form, with actual expenses shown, will be forwarded to the department head when the travel is completed and all related expenses have been paid. Travel expenses to be charged to employee’s Professional Development 6r Tuition Reimbursement benefits should be approved by the Human Resources Department before payment or reimbursement is made. Page 4 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 J Pre-payments for specific arrangements, accompanied by a copy of the signed Pre-Travel Authorization, do not need subsequent department director approval. If any payments need to be expedited, a RUSH priority must be indicated, and the request hand carried to Accounts Payable. (Allow at least three working days for payment processing.) Registration Fee The City encourages departments to use procurement cards for conference registration. A copy of the Pre-Travel Authorization should then be attached to the monthly procurement card activity log. When making reservations, departments should ask if government rates are available. A box must be checked on both the Pre-Travel Authorization and Travel Expense forms indicating that government rates were requested. An expense report must be filed with Accounts Payable following the conference. If a prepayment is requested through Accounts Payable, registration fees must be payable to the conference organization and shall be for those expenses indicated in the published information attached to the payment request form. Any deadlines for receipt of the registration should be identified prominently on the face of the payment request to assure timely payment. Lodging Expense The City encourages departments to use procurement cards for lodging reservations. A copy of the Pre-Travel Authorization should then be attached to the monthly procurement card activity log. Prepayment of hotel expenses may also be made by submitting a payment request form, with the Pre-Travel Authorization attached. When making reservations, departments should ask if government rates are available. A box must be checked on both the Pre-Travel Authorization and Travel Expense forms indicating that government rates were requested. Departments should also ask the hotel if the City of Palo Alto, as a government entity, is exempt from paying the Transient Occupancy Tax (TOT) and, if so, clarify what sort of documentation is required to qualify for the exemption. Traveling employees should carry their City ID cards. Prepayment may be made either for the first day only, to guarantee the room, or for the full number of days, including room tax (if known). An out-of-state trip involving cross-country travel may Page 5 of 15 POLICY AND PROCEDURES 1-021ASD Revised: September 2004 require hotel accommodations both before and after the conference. Within California or adjoining states an extra hotel stay should not be necessary if flight arrangements can be made the same day. Prepayment or reimbursement of hotel bills will be limited to non- deluxe accommodations and will cover only the room charges for the employee. The original bill or receipt should be attached to the Travel Expense Report. 4.Travel Arrangements Departments are encouraged to make airline reservations on the Internet, utilizing a procurement card for payment. The Pre-Travel Authorization should then be attached to the monthly procurement card activity log. The City also contracts with a travel agency to be the exclusive travel agency handling City travel business. Any request to utilize other agencies must be approved by the Manager of Purchasing. City employees requiring assistance with travel services should call the designated travel agency and advise the agent that they are calling from the City of Palo Alto. 5.Transportation Air Transportation. Payment or reimbursement will be limited to economy coach class commercial air carrier. Selection of carrier, reservations, and ticketing shall be made on the Internet using a procurement card, employee’s personal credit card, or arranged with the City’s travel agency. If paid by a personal credit card, the employee may request reimbursement of airfare by submitting a copy of the online receipt or credit card bill prior to the conference. Employees are encouraged to make air reservations as early as feasible to obtain the greatest discount and to consider the use of alternate but nearby airports with ground transportation to take advantage of the lowest fares. Extension of the trip to cover any weekend stay over to obtain a lower airfare does not entitle the employee to be reimbursed for the extra day’s hotel costs or per diem. An employee may use City travel to qualify for frequent flyer credits, but the selection of an airline for a given trip shall not be made for the purpose of accumulating such credits. Rental Cars. The necessity for a rental car must be established by the employee on the Pre-Travel Authorization, and must be specifically approved by the Page 6 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 department head. Rental cars can be arranged through the City’s travel agency, or contracted for personally with reimbursement made when the expense report is filed. At this time, procurement cards cannot be used for car rentals. Only standard or economy car models may be rented, unless the upgrade is provided by the rental agency at no cost. Because the City is self-insured, employees should decline any additional insurance offered by the rental company. Employees must also decline any Fuel Purchase Options (which allow for prepayment of a gas tank refill). Use of a rental car, in lieu of a private auto, to travel to and from an out of town event will be reimbursed either at the private auto mileage rate or the car rental cost apportioned for the number of days used for City business, whichever is less. Private Automobiles. Employees may use private automobiles for personal or group transportation on extended trips upon receiving approval on the Pre-Travel Authorization form. Reimbursement shall be made at the rate established by the IRS for computing the value of personal use of an employer-supplied vehicle. This rate is determined at the beginning of each calendar year. The distance to be reimbursed shall be measured from City Hall or home, whichever is fewer miles. Mileage reimbursement shall not exceed the cost of refundable round trip air transportation (economy class), for a reservation made at least seven days in advance of the trip. do City Pool Cars. City pool cars normally may not be used for transportation on extended trips. Requests for use of City vehicles or rental vehicles for this purpose should be directed to the Fleet Manager, Equipment Management Division, Public Works. For use of vehicles assigned to specific divisions and!or individuals, refer to the policy on Vehicle Use, Policy and Procedures 4-1. Advance For Meals and Incidentals An employee may request an advance of funds, using the Pre-Travel Authorization form, for payment of meals and incidentals of $46.00 per travel day plus $50.00 per trip for airport limo, cab fares or airport parking, if applicable. If the employee departs mid-day, per diem for that day is $22. Page 7 of 15 o POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 If meals are provided as part of conference registration costs (or included with the airfare), the $46.00 per day allowance will be reduced by: $9.00- Breakfast $13.00 - Lunch $24.00- Dinner The conference agenda should be highlighted to indicate meals known to be included in the conference registration. Receipts are not required for meal expenses, but receipts for ground transportation (airport limo, cab fares or airport parking) should be submitted with the Travel Expense Report if they exceed $25 per day. Reconciliation and Reimbursement Within thirty business days after the employee’s remm from the trip, a Travel Expense Report must be filed with the Accounting Division of the Administrative Services Department. The employee must check the box on the expense report to certify that the information is correct. The filing of this form is necessary whether or not reimbursement is requested in order for the City and the employee to document to the Internal Revenue Service that payment of the expenses does not constitute miscellaneous income to the employee. If expenses for any trip are not reported within the required thirty working days, no future travel requests will be processed for the individual until the previous processing is complete. Original receipts for the lodging and transportation (airline ticket) shall be attached, as well as necessary receipts to support additional expenditures to be reimbursed. A copy of the meeting agenda, if available, must be included to confirm employee attendance;~ the employee signature on the Travel Expense Report certifies that indicated business expenses are correct. The cost of airfare and hotel will normally be prepaid. Reimbursement for calls home is limited to one call per day, which should be restricted to a reasonable length. Employees will also be reimbursed for telephone calls to City of Palo Alto offices. The hotel bill should indicate any calls that are of a business nature. Other charges on the hotel bill, such as pay-TV movies, videotape rentals, cleaning, laundry, or additional guests are not reimbursable. Daily hotel parking charges are reimbursable. A maximum of $46.00 per day for meals (decreased for meals provided) is allowed without presentation of actual receipts. If the employee actually spends less than this amount (including tips), then Page 8 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 the lesser amount should be reported on the travel reconciliation form. Employees will not be reimbursed for the purchase of alcoholic beverages. If the employee spends less than the amount advanced, a check payable to the City of Palo Alto should be attached to the form. If reimbursement is due to the employee, payment will be made from the Travel Expense Report (no separate claim voucher is needed). Reimbursements due to the employee must be approved by another management employee, as designated by the department head. Expenses that exceed the per diem advance must be substantiated with receipts and authorized by the department head. Bo Local and One-Day or Less Travel and Meals Expense 1.Meals The City will reimburse for local meals according to the guidelines below. Total expenses of up to $150 for one-day travel (mileage, parking, tolls and meals) should be reimbursed through the petty cash fund located on the first floor of city hall in Revenue Collections. A Citvwide Petty Cash Reimbursement form for meal expense reimbursement or travel expense reimbursement (one day or less) should be prepared for any reimbursement, and should be accompanied by appropriate receipts, agendas, meeting announcements, etc., if available. If no formal agenda or notice is available, the form should contain an explanation of the nature of the business discussed or transacted, and an explanation of why the meal was necessary for the conduct of City business. No receipts are necessary for less than $25, but a detailed record of expenses should be maintained and attached. Since the Citvwide Petty Cash Reimbursement Form requires approval from the department head, no Pre-Travel Authorization form is needed for one-day travel. A copy of the Ci,ty~vide Pet,ty Cash Reimbursement form, including an explanation of the required information, is included with this policy. The following types of meal expenses are eligible for reimbursement with the approval of the department head: ao Meals taken when an employee has been assigned offsite to receive training, conduct field surveys, or attend meetings and Page 9 of 15 No Co POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 the employee’s normal meal break occurs during the time of travel or assignment. Meal reimbursement for local training or professional meetings, conducted between the hours of 8 a.m. and 5 p.m., will be limited to lunch expense, and only if lunch is not provided with the event. Meals that are an integral part of or directly related to a formal meeting of a recognized organization whose purpose is directly related to City business. Meals or refreshments taken during meetings consisting solely of City employees which have been planned and scheduled, and for which an agenda has been prepared indicating that the purpose of the meeting is to conduct City- related business. d°Meals or refreshments taken during meetings consisting solely of City employees which are exclusively working sessions where employees are required to continue working through a meal break. Working meals involving only City employees should be avoided wherever possible. eo Meals taken during meeting with vendors, contractors, consultants, or other non-City employees to discuss business directly related to City projects or operations when necessary for the conduct of City business. Meals taken during meetings with a prospective job applicant. In those cases where the Human Resources Department is to pay for the meal, a signature approving the reimbursement should be provided by a Human Resources Department representative on the reimbursement form. go Meals taken by management employees assigned to attend night meetings for actual expenses up to $20 for dinner, upon submittal of the agenda for the meeting attended. Maximum reimbursement guidelines per person for business meetings are shown below. There will be no adjustment for meal expenses in excess of these per diem rates. $9.00 - Breakfast $13.00 - Lunch $24.00 - Dinner Page 10 of 15 o POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 If a department is hosting a non-luncheon meeting on City-related issues, refreshments in an amount not to exceed $50.00 may be authorized by the department head. If a working luncheon is being provided by a department for community groups, liaison committees, etc., the Purchasing Division will provide a list of restaurants with whom the City has established blanket purchase orders for provision of the luncheon. Miscellaneous Expenses Miscellaneous expenses not exceeding $150 and related to attending local meetings (e.g., parking, bridge tolls, etc.) can be reimbursed through petty cash on the first floor of city hall in Revenue Collections. No receipts are necessary for less than $25, but a detailed record must be maintained and attached to the Petty Cash Reimbursement form. J Transportation for Formal Meetings/Classes Outside the City go If available, City pool cars or assigned vehicles should be used for same-day trips that are outside the City limits but within the Bay Area. Personal cars may also be used, but reimbursement will only be made for that portion of the trip from the employee’s job location or residence, whichever is fewer miles to the destination. J No Council appointed officers and department heads who receive an automobile expense allowance in lieu of exclusive use of a City automobile may not use City pool cars for business use except on an emergency basis which is documented by memo to the City Manager. Reimbursement for Personal Vehicle Use on City Business ao Trips between City facilities or other meeting locations for City business within City limits should be made by City pool cars or assigned vehicles whenever possible. No If a city vehicle is not available, regular and hourly City employees who, by management assignment and approval, use their personal vehicles for travel which is in connection with a specific job function, formal meeting, or assigned off- site training class are entitled to be reimbursed for that Page 11 of 15 Co POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 mileage at the prevailing reimbursement rate. The mileage and purpose of the trip must be clearly identified on the Meal/One Day Travel Reimbursement Form. Reimbursement requests that cover more than one date will be accepted on one form if the trips are for the same purpose or meeting. Council appointed officers and department heads who are recipients of an automobile expense allowance may not receive personal vehicle mileage reimbursement, or other forms of City-paid business travel, except in the case of business travel beyond the following Bay Area counties: San Francisco, San Mateo, Santa Clara, Santa Cruz, Alameda, Contra Costa, Sonoma and Marin. Co Applicability to Employee Training Program Department heads are responsible for administration of appropriations for employee training activities including reimbursement of travel expenses incurred in attending off-site classes and seminars. The following guidelines should be observed: Training should be directly related to the employee’s job responsibilities and the department’s training and development plan. Employees should not travel outside the Bay Area if the same or similar training is available locally within a reasonable period of time. Where possible, training activities should be restricted to locations within the State of California. NOTE: Questions and/or clarification of this policy should be directed to the Administrative Services Department. Attachments:Quick Reference Guide for Pre-Travel Authorization Quick Reference Guide for Travel Expense Report Page 12 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 Pre -Travel Authorization Quick Reference Guide Filing Requirements: ¯ An employee MUST obtain approval from department head or designee. Approval from City Manager or CAO required for out-of-state travel. ¯Send original Pre-Travel Authorization to Accounts Payable with a full copy of conference agenda. Registration Fee: ¯ Use of Procurement card or Executive Staff card is encouraged, if applicable. ¯Prepare claim voucher payable to conference organization. ¯Attach copy of: Pre-Travel Authorization Form Conference Registration Form w/agenda Attachments to be mailed w/check (provide a copy for A/P file) Lodging Expense: ¯ Use of Procurement card or Executive Staff card is encouraged, if applicable. ¯Prepare claim voucher payable to hotel with daily rate, tax rate, and confirmation number. ¯Attach copy of: Pre-Travel Authorization Form Conference Registration Form w/agenda Attachments to be mailed w/check (provide a copy for AiP file) Travel Arrangements: ¯Online airfare ticket purchase is encouraged. ¯A purchase request needs to be made on airline tickets through City travel contract. Air Transportation: ¯ Payment or reimbursement is limited to economy coach. (Must attach supporting documents) Rental Cars: ¯Employee needs to make arrangements and will be reimbursed on expense report. ¯Justification needs to be explained and approved by department head. ¯City will not pay for upgrades, additional insurance, or fuel purchase options. ¯No advance provided for rental cars. Page 13 of 15 POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 o 10. Private Autos: Mileage rate is established by the IRS, and reviewed annually. Current rate is shown on Travel Expense Report and Petty Cash Reimbursement form. Mileage reimbursement shall not exceed the cost of refundable round trip air transportation (economy class). Attach supporting documents. City Pool Cars: Cannot be used on extended trips. See Policy & Procedures 4 - 1. Advance for Meals and Incidentals: ¯Indicate on Pre-Travel Authorization form if an advance is requested. ¯Advance will be mailed to employee’s home approximately one week prior to conference. If requested, advance is given for meals ($46 per day) plus $50 for airport limo, cab fares or parking (save receipts). ¯The conference agenda should be highlighted to indicate meals included in the conference registration. Further Information: for your trip. Call Accounts Payable ext 2599 before leaving Travel Expense Report Quick Reference Guide Filing Requirements: ¯ An expense report should be filed with Accounts Payable within thirty business days of returning from your trip and is required whether or not you are owed any money from the City, per IRS regulations. ¯Fill out all sections at the top of the report, including name, employee number, position, extension, department, cost center and commitment item code, the full name of the conference (not just initials), location and dates. Pre-Travel Authorization: ¯ Attach a copy of the signed Pre-Travel Authorization form and registration form, with agenda. Hotel: ¯Attach a copy of the itemized hotel bill, and enter the daily room rate per day, including tax on the form. Page 14 of 15 o POLICY AND PROCEDURES 1-02/ASD Revised: September 2004 Meals: Per Diem or lesser amounts for breakfast ($9), lunch ($13), and dinner ($24) do not need receipts. ¯Deduct any meals which are hosted by the conference or meeting. ¯Enter the amount in each daily box. Miscellaneous Transportation, Parking, Bus/Taxi: ¯Receipts are required for reimbursement if over $25 per day, even though an advance of $50 may have been given. ¯Enter the amount in each daily box. Telephone Calls: ¯One limited personal call per day. ¯Note work-related calls on Itemized hotel bill (Including faxes). ¯Enter the amount in each daily box. Car Rentals: ¯Car rentals must be established with the Pre-Travel Authorization and approved by your department head in advance. The City no longer has a contract with a car rental agency, so the employee has to pay for rental car and attach receipt for reimbursement. ¯All upgrades to be paid by employee. ¯Employee should decline any additional insurance or fuel purchase option offered by the rental company. ¯Enter the amount in the total column. Transportation: ¯Attach airfare receipt and itinerary indicating dates and time of travel. ¯Enter the amount in the total column. Other: ¯ Anything unusual for which you want reimbursement needs a memo signed off by your department head. When in doubt, always obtain a receipt. 10.Expenses Not Covered: ¯Social events, TV movies or videotape rentals, cleaning or laundry, additional guests, and alcoholic beverages. 11. Further information: for your trip. Call Accounts Payable ext 2599 before leaving Page 15 of 15