PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: October 1, 2024
Submitted by: Jennifer Lampman
From: Finance
Subject:
Update to Policy No. 344 Governing Travel and Meeting Allowances and Policy No. 445 Procurement (Credit) Card Use
Financial Impact:
Fiscal Impact: None
Summary:
It is necessary for the City's elected, appointed officials and employees to be well informed regarding current developments in local government. Relevant training, conferences, meetings sponsored by local government associations, professional societies, training specialists, universities and colleges, provide such information. City Officials are encouraged to attend and participate in conferences, meetings, etc., dealing with subject matter appropriate to their respective functions in the City government. Funding for staff development is included in the annual budget for this purpose.
Policy No. 344 was last updated in 2023 and requires minor updating to incorporate requirements of AB1234 that were not included in the last update. Policy No. 445 was last updated in August 2016 and requires updating to reflect changes in procurement card provider and reconciliation process.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Review and discuss the proposed updates to Policy No. 344 governing Travel and Meeting Allowances for city staff and elected officials; and
2. Direct staff to incorporate changes discussed and bring back updated Policy No. 344 for approval; and
3. Review and discuss proposed updates to Policy No. 445 Procurement (Credit) Card Use; and
4. Authorize City Administrator to approve changes as discussed under his authority.
Strategic Plan Statement:
This item is consistent with the City Council approved 5 -Year Strategic Goal # 7: Enhance Employee Development, specifically Objective 7.2, Enhance Training and Development Opportunities for Staff.
8 Discussion:
The City's elected and appointed officials and employees must remain informed and up to date on legislation and industry trends potentially impacting the City as well as advocate for the economic interests of the City whenever possible. To do so, it is often necessary to attend training and conferences at too great a distance from the City of Placentia for an individual to travel to/from within their regular workday.
The current travel policy, No. 344 was last updated in 2023 and outlines the guidelines city staff and elected officials should follow when traveling on behalf of the City including:
• Who is covered by the policy (Elected and Appointed Officials and all city staff) • What travel or training related expenses will be reimbursed by the City • What expenses are unauthorized
• Process for acquiring advanced approval for travel
• Use of U.S. General Services Administration (GSA) per diem and mileage reimbursement rates for the specific travel destination • Preferred method of payment for travel expenses
Staff is recommending small changes to the existing policy to clarify the process for per diem reimbursement, specifically requirements of AB1234 requiring receipts for all expenses, including meals, for elected officials even when they fall within the per diem.
In addition to the City's travel policy, staff is also recommending updates to the Policy No. 445 Procurement (Credit) Card use. The procurement care policy was last updated 8/30/16 and the City has changed procurement card providers, and the process or reconciliation has gone from paper-based system to online. The changes in the policy reflect this change, as well as clarifies some authorized uses and updates the spending limits for staff based on their position. Proposed changes in single transaction spending limits are:
• General Employees:
• Mid -Managers:
• Department Heads:
• City Administrator:
$ 750 to $1,000
$1,000 to $2,500
$2,500 to $5,000
$5,000 to $5000 (no change)
The proposed limit changes align with the City's purchasing policy and also reflect inflation and the increased use of procurement cards since the policy was last updated in 2016.
Attachments
2024 User Agreement for City -Issued Purchasing Card - Elan Financial Services.docx Current Credit Card Policy No. 445
Proposed PM 445 Credit Card Use.docx
Proposed PM'344 Travel & Meeting Allowances.docx
Travel Policy Update 10.24.pptx
9 Mayor
JEREMY B. YAMAGUCHI
Mayor Pro Tem
KEVIN KIRWIN
Councilmembers:
RHONDA SHDER
WARD L. SMITH
CHAD P. WANKE
The People are the City
PLACENTIA
401 East Chapman Avenue — Placentia, California 92870
USER AGREEMENT FOR CITY -ISSUED PURCHASING CARD
City Clerk:
ROBERT S. MCKINNELL
City Treasurer
KEVIN A. LARSON
City Administrator
DAMIEN R. ARRULA
The following user agreement must be signed by all authorized employees of the City of Placentia with access to a Purchasing Card.
I understand that the City of Placentia has authorized my use of a City Purchasing Card for authorized business expenditures on its behalf. In accepting and/or using the card, I agree to be bound by the terms and conditions which follow:
• I will use the card issued to me only for the payment of authorized expenses consistent with my department's responsibilities and to satisfy department and City needs. • I understand all purchases with my City -issued Purchasing Card must be made in accordance with Placentia Municipal Code Title 3, Chapter 3.08 for purchasing. • I understand the single purchases are limited to $750 for staff and $1,000 for Mid -Manager with a total credit limit of $2,500. Single purchases are limited to $2,500 for Department Heads with a total credit limit up to $5,000 with the exception of the Chief Financial Officer and City Administrator (for emergency) who have a single purchase limit of $5,000.
• I will not use the card to obtain cash advances.
• I understand that I am the only authorized card user. • I will not use the card for personal use or for any other non -City purposes. • I understand that all purchases shall be made in accordance with applicable purchasing, travel, and credit card policies and/or procedures in place and/or adopted by the City Council. • I understand that I will be responsible for the timely reconciliation of all Purchasing Card transactions charged to my card.
• I understand that I am responsible to provide appropriate documentation for Purchasing Card transactions charged to the card.
• I will surrender the card to the Finance Director, or designee, in the event of my transfer within or separation from the City.
• I understand that any charges against the Purchasing Card that are not properly identified or not allowed by the City shall be paid by me by check, currency, or salary deduction in US dollars. 1 further understand that any employee who has been issued a Purchasing Card shall not use the card if any disallowed charges are outstanding and shall surrender the card upon demand of the City Manager, Finance Director, Department Director, or designee.
• I will immediately report any stolen or lost card to the Finance Director or designee. • I will immediately report a stolen or lost card to the Bank at the following number:
1-800-523-9078
Elan Financial Services
10 I understand that any variance and/or violation of the above conditions will result in cancellation of my credit card. Misuse of the card could result in disciplinary action and/or personal liability for unapproved charges and in extreme cases termination.
All City Purchasing Card purchases are subject to examination by external auditors.
The City shall have unlimited authority to revoke use of any Purchasing Card issued and upon such revocation shall not be liable for any cost subsequently charged to the Purchasing Card.
I certify I have received, read, and understand Policy 445 Credit Card Use.
I HAVE READ AND I UNDERSTAND THE ABOVE CONDITIONS.
Date
Print Name
Signature
Department
Last 4 Digits of Credit Card
-ROUTE COPY OF COMPLETED FORM TO THE FOLLOWING DEPARTMENTS - A copy of this form shall be maintained in Finance.
A copy of this completed form has been routed to Human Resource for employee's personnel file.
A copy of this completed form has been routed to the originating department.
Upon separation from City:
Date Credit Card Surrendered:
Signature of Finance Staff accepting surrendered card:
Date Credit Card Deactivated:
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CREDIT CARD USE
Purpose
POLICY NO. 445
To insure that the use of City credit cards are properly authorized and to reduce the risk offraudulent use of City credit cards.
To establish policies and procedures for the use of City credit cards.
To expedite purchase of supplies and materials for less than $1,000.00.
Definition of Terms
City credit cards are plastic or metal cards with a magnetic strip or embedded microchip authorized by the City of Placentia through a vendor for the purpose of purchases under $5,000.00.
Policy
Under certain circumstances, the use of a City credit card may be the most appropriate method for certain purchases. City Credit Cards are not to be used to circumvent the City's purchasing policies. All gasoline purchases will be in accordance to the City's Gas Card policy. The following policies and procedures are established to ensure internal control and timely payment of charges.
City credit cards shall be issued to an individual employee after approval by the employee's supervisor, department head and the City Administrator. In order to obtain authorization to use a City credit card, a Purchasing Card Request & Authorization Form (Attachment 1) must be completed.
Prohibited Uses
The City credit card shall not be used for the following:
a. Any personal items and personal services, even if the intent is to repay the City at a later date.
b. Cash advances, wire transfers, money orders, etc.
c. Betting, casino gaming, or related activities.
d. Political or religious organizations.
e. Court costs, fines, bail, or bonds.
f. Rental or lease payments.
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g. Purchase of telephone services including pagers and calling cards, except for business telephone calls charged to a hotel/motel room while traveling on City business.
h. Alcoholic beverages.
i. Other prohibited/restricted uses deemed by the City Administrator. j. Unauthorized purchases.
In addition, for Internal Revenue Service (IRS) tax reporting requirements, except for Emergency Purchases (as defined below), City credit cards may not be used to purchase services provided by vendors who are doing business as partnerships or sole proprietors. Examples of this inclusive, but are not limited to:
a. Labor charges for auto repairs
b. Plumbers
c. Construction Contractors
Authorized Uses
City credit cards shall be available to the staff for the conduct of official City Business, included but not limited to the following purposes:
a. Gasoline purchases for City vehicles when fueling the vehicle is necessary and the City Yard is closed or the distance to the City Yard is impractical.
b. Authorized travel expenses and hotel charges which
shall subsequently be documented on the travel
reconciliation report.
c. To charge the cost of meals when required for the conduct of official business, except when an employee is traveling on a per diem basis. (See Travel Policy.)
d. Other circumstances where the use of a credit card best meets the City's purchasing needs as determined by the City
Administrator or the appointed designee.
e. No personal items shall be charged on any City credit card.
Spending Limits
There are two transaction limits placed on Purchasing cards, which includes all tax, shipping, and any other charges to the transaction. Purchases by the use of a
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Purchasing Card shall notexceed:
POLICY NO. 445
a. Single purchase and transaction limit = up to $5,000
1. $750 for Staff
2. $1,000 for Mid Managers
3. $2,500 for Department Heads
4. $5,000 for the Chief Financial Officer and City
Administrator (foremergencies)
b. 30 -Day monthly purchase limit = up to $15,000 (unless otherwise authorized by the City Administrator)
Single -purchase and transaction limit. Every purchasing card holder has an individual single purchase and transaction limit that may not exceed $5,000. A single item shall not exceed $2,500. The credit card company will not authorize purchases that exceed the limit.
c. Daily Limit. The maximum amount a cardholder may charge in one day. This enables the Cardholder to make more than one purchase on the same day. Please note that you are only allowed five (5) transactions per day.
d. 30 -Day Monthly Limit. In addition to a single -purchase and transaction limit, your Director or the Chief Financial Officer has established a 30 -day monthly limit based on the anticipated purchasing needs of your department or division. The 30-dav period corresponds to the billing cycle.
Unique situations may arise where a required purchase exceeds a Cardholder's established limit. The cardholder shall contact their Supervisor or Department Head and complete a Purchasing Card Temporary Increase Request Form. (Attachment 2). Once the form is approved and signed by the Department Head and City Administrator, the Department Head will forward to the Chief Financial Officer. The Chief Financial Officer shall contact the Agency Program Coordinator to temporarily increase a cardholder's spending Limits. At the end of the temporary 30 dav period, the Agency Program Coordinator will restore the spending limit to its original amount.
Credit Card Purchase and Statement Procedure
All receipts must be turned in monthly with the credit card statement so they can be reconciled. Cardholders shall complete the following steps with each purchase:
Require the vendor to provide the following documentation:
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a. Imprint of vendor name and identification
b. Date of purchase
c. Amount of purchase
d. Brief but specific description of items being purchased e. For meals:
1. Receipts must itemize the meals ordered
2. Document the meeting type and the attendees
Retain the sales draft with accompanying receipt/invoice. For internet orders, print a copy ofthe order form. For mail orders, maintain a copy of the order form.
Within 24 hours of a purchase using your credit card. an email will be sent to the purchaser informing them that a purchase has been made. A link is Provided in the email for you to go online and approve the purchase and code it to the proper department and account number. When the email is received, use the following procedures:
a. Click on the link in the email and login with your User ID and password b. For each transaction, add the item description. and code the expense to theproper Organization/Division and Account number c. If no receipt, provide an explanation why and complete a lost receipt form
d. Approve and sign out of queue for transaction to be escalated to theDepartment Head for approval
Supervisor/Department Head Approval:
Once Cardholder has verified and coded the purchase, an email is sent to that employee's supervisor who will electronically approve the purchase and verify the item has been charged to the correct department and account number. The Department Head should approve all credit card purchases in his/her department within 3 business days. (This should not be delegated.) When the Cardholder is a Department Head, the same procedures will be followed. The approval will be escalated to the City Administrator.
Once the Department Head or City Administrator has approved, the transaction
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will be routedto the Finance department for payment processing.
Payment Processing
POLICY NO. 445
Monthly credit card statements are mailed to the Finance department and circulated to each credit cardholder for their review and verification of the charges. Upon receipt of the statement, cardholders shall complete the following steps:
a. Balance all sales drafts, receipts/invoices, or order forms to the statement, which will show all transactions made during the billing cycle. All items must be accounted for on the statement with supporting documentation. If the cardholder had no purchases during the billing cycle, no statement will be generated.
b. Indicate the account number to be charged for each item by writing it on the statement.
c. Within three (3) days of receipt of the credit card statement, submit the balanced statement with attached sales drafts, receipts/invoices, logs, and order forms to the Department Director for approval and routing to the Finance Department for payment processing.
d. For purchases form Department Directors, the same procedures should be followed with submission of the balanced statement with attached sales drafts, receipts/invoices, logs and order forms to the City Administrator for approval and routing to the Finance Department for payment processing.
Lost or Stolen Cards
When an employee's Purchasing Card is lost or stolen, the employee shall immediately notify:
a. The bank
b. The Police if a burglary, robbery, or other crime occurred c. Employee's approving official
d. Custodian of Record
e. Chief Financial Officer
f. City Administrator
Provide the following information in writing to all parties:
a. Employee complete name
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b. Purchasing card number
c. Date the loss was reported to the Police, if applicable d. Date the bank was notified
POLICY NO. 445
e. Any purchases made the day the card was lost or stolen Upon notification of lost or stolen card, the Chief Financial Officer will contact the Agency Program Coordinator to follow up with the bank to ensure the card has been deactivated. Based upon a review by the Department Head, Chief Financial Officer and City Administrator a new card may be re -issued by the bank. A new account number will be assigned to the employer's new card.
De -Activating Cards
When an employee with a Purchasing Card leaves the employ of the City, the followingprocedures shall be followed:
a. The employee shall tum in the card to their Department Head. b. The employee shall tum in all receipts for purchases made within that month to theirdepartment head or his/her designee for processing. c. The Department Head is responsible for collecting the card and delivering returned cards to the Finance Department to be stored in a safe.
d. The Department Head or his/her designee is responsible for notifying the FinanceDepartment in writing to deactivate the card. e. The Department Head should ensure the Purchasing Card Request & Authorization Form (Attachment 1) is updated with the date the card was surrendered and signature of supervisor accepting surrendered card.
f. The updated Purchasing Card Request & Authorization Form (Attachment 1) should be forwarded along with the card to the Finance Department for processing and signature.
g.
Once the card has been de -activated and final signatures and dates have been added, the Finance Department should route a copy with all signatures to the Human Resources department for insertion into the employee's personnel file.
h. The Accounts Payable department will monitor the ongoing transactions on that account for 60 days to check for recurring
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charges that may need to be transferred to another card.
Emergency Purchases
If an emergency purchase is required and a credit card is used, the employee making the purchase or their department head shall follow the established procedure below to report the purchase to the finance department.
Since emergency purchases do not normally provide the City an opportunity to obtain competitive quotes or properly encumber funds committed, sound judgment shall be used in keeping such orders to an absolute minimum. In addition, the following requirements shall apply:
a. The Purchasing Division shall be contacted as soon as possible for an advance purchase order number, which may be given verbally, to cover the emergency transaction. If unable to contact the Purchasing Division, place the order and contact the Purchasing Division the next workday.
b. A completed purchase requisition shall be submitted to the Purchasing Division within two working days, or as soon as the information is available. All purchase requisitions for emergency purchases shall be signed by the appropriate department head. c. Documentation explaining the circumstances and nature of the emergency purchase shall be submitted by the appropriate department head or designee as follows:
1. Purchases less than $5,000: Use standard purchasing
procedures.
2. Purchases in the amount of $5,000 - $10,000: Require the approval of the City Administrator.
d. If the emergency purchase causes a budget line item to exceed the approved budget, it shall be the responsibility of the department requesting the purchase to obtain subsequent City Council approval, through the Purchasing Agent, for an additional appropriation or to make a transfer to cover the purchase.
Failure to comply with City policy may result in the revocation of authorization to use the City credit card and may result in progressive discipline including termination of employment.
Attachment 1 - Purchasing Card Request & Authorization Form Attachment 2 - Purchasing Card Increase Request Form
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PROCUREMENT (CREDIT) CARD USE
Purpose
The purpose of this policy is to establish a framework for appropriate use of Procurement Cards. Procurement Cards are City -issued credit cards issued from a financial institution selected solely by the City. The procurement card may be used as an option to expedite smaller purchases of supplies and materials, subscriptions, memberships, training and certain travel expenses.
This policy applies to all employees who are issued a City of Placentia procurement card.
Purchases made by procurement card must still abide by the City's Purchasing Policy No. 430, Gas Card Policy No. 446 and Travel Policy No. 344. Intentional misuse of the procurement card may result in the reimbursement by the employee for ineligible expenses, disciplinary actions including termination, and/or notification to law enforcement agencies.
Policy
Under certain circumstances, the use of a City procurement card may be the most appropriate method for certain purchases. City procurement cards are not to be used to circumvent the City's purchasing policies. The following policies and procedures are established to ensure internal control and timely payment of charges.
City procurement cards shall be issued to an individual employee after approval by the employee's supervisor, department head and the City Administrator or his/ her designee.
In order to obtain authorization to use a City procurement card, a Procurement Card Request & Authorization Form (Attachment 1) must be completed. All employees with a procurement card must also sign a User Agreement for City -Issued Procurement Card (Attachment 2) upon receipt of the card.
Prohibited Uses
The City procurement card shall not be used for the following:
a. Any personal items or services, even if the intent is to reimburse the City at a later date
b. Cash advances, wire transfers, money orders, etc.
c. Ammunition and weapons
d. Betting, casino gaming, or related activities
e. Fixed asset purchases
f. Political or religious organizations
g. Court costs, fines, bail, or bonds
h. Legal fees
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j. Rental or lease payments
k. Purchase of movies, entertainment, premium television services, dry- cleaning, spas, gyms, salon/barber services, magazines, shoeshines, travel insurance, purchase of clothing or toiletries, loss of tickets, fines or traffic violations, excess baggage costs, personal losses incurred while on City business, repairs to personal vehicles, office equipment and other items of a personal nature
I. Optional tours, banquets or other activities not related to professional development offered through a conference, but as an additional cost to registration, are solely at the discretion of the employee and will be considered as a personal expense
m. Meals consumed by employees while traveling on City business (See Travel Policy No. 344). Those expenses shall be covered by a per diem. n. Alcoholic beverages
o. Mobile payments such as Venmo, PayPal, Zelle, Apple Pay, etc. p. Other prohibited/restricted uses deemed by the City Administrator q. Unauthorized purchases
In addition, for Internal Revenue Service (IRS) tax reporting requirements, except for Emergency Purchases (as defined below), City procurement cards may not be used to purchase services provided by vendors who are doing business as partnerships or sole proprietors. Examples of this include, but are not limited to:
a. Labor charges for auto repairs
b. Plumbers
c. Construction Contractors
Authorized Uses
City procurement cards shall be available to the staff for the conduct of official City business, including but not limited to the following purposes:
a. Gasoline purchases for City vehicles when fueling the vehicle is necessary, the gasoline pumps at the City Yard are closed or the distance to the City Yard is impractical, and the City's Fuel Card is not available. The City's Fuel Card should be used for most gasoline purchases with the procurement card only used as a last option.
b. Authorized travel expenses and hotel charges which shall subsequently be documented on the travel reconciliation form.
c. The cost of meals when required for the conduct of official business, except when an employee is traveling on a per diem basis. (See Travel
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d. Conference or meeting registration.
e. Smaller purchase of office supplies, supplies for community events and/or supplies needed for the repair and maintenance of City facilities or vehicles. f. Other circumstances where the use of a procurement card best meets the City's purchasing needs as determined by the Purchasing Agent or the appointed designee.
Spending Limits
There are two transaction limits placed on procurement cards, a single purchase limit and a monthly limit. These dollar thresholds include all tax, shipping,and any other charges related to the transaction. Any purchase greater than $2,500, inclusive of any applicable sales tax and shipping charges, require a purchase order as outlined in the City's Purchasing Policy. Recommended spending limits are outlined below, but departments may request different limits for specific employees based on their roles and needs of the department. Justification for alternate spending limits must be clearly documented on the Procurement Card Request & Authorization form.
a. Single purchase transaction limit
1. $1,000 for general employees
2. $2,500 for Mid Managers
3. $5,000 for Department Heads
4. $5,000 City Administrator
b. 30-Dav Monthly Limit
1. $2,500 for general employees
2. $2,500 for Mid Managers
3. $5,000 for Department Heads
4. $10,000 City Administrator
Unique situations may arise where a required purchase exceeds a Cardholder's established limit. In those cases, the cardholder shall contact their Supervisor or Department Head for approval, and the Department Head shall notify the Purchasing Agent, or designee, by email of the need for the temporary credit limit increase. This notification shall include the cardholder's name, reason for the temporary increase, amount needed, and the date to return the credit limit to its regular amount.
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The City utilizes an electronic, online procurement card system wherein each cardholder has a unique login. Individual transactions are listed in the system's transaction management screen and all receipts and supporting documentation must be uploaded to the appropriate transaction. In addition, each cardholder must allocate each purchase to the appropriate General Ledger account and add comments indicating the reason for the purchase.
Cardholders can choose to set up alerts in their profile which will send an email within twenty-four (24) hours of a transaction on their procurement card. A link is provided in the email for you to go online and approve the purchase and code it to the proper department and account number.
All transactions must have supporting documentation in the form of receipts and be submitted to the cardholders supervisor for approval.
Receipts
All receipts must be uploaded to the online procurement card system so they can be reconciled no later than fifteen (15) days following the end of the month. This timeframe includes the time for the cardholder's supervisor to approve transactions. Cardholders shall complete the following steps with each purchase:
Require the vendor to provide the following documentation:
a. Imprint of vendor name and identification
b. Date of purchase
c. Amount of purchase
d. Brief but specific description of items being purchased e. For meals:
1. Receipts must itemize the meals ordered.
2. Document the meeting purpose and all attendees.
3. Upload the credit card authorization receipt showing the meal's subtotal, tip amount and total amount charged. Per Travel Policy No. 344, tip should not exceed 20% of the total receipt amount, excluding tax.
Supervisor/Department Head Approval:
Once the Cardholder has verified and coded the purchase to the appropriate GL account, and submitted it to their supervisor for approval, the supervisor must login to review the transaction, GL coding and documentation and approve each transaction. This step must
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When the cardholder is a Department Head, the same procedures will be followed, with approval completed by the City Administrator or his/ her designee.
Once the Department Head or City Administrator has approved, the transaction will be routed to the Finance department for payment and posting to the General Ledger.
Lost or Stolen Cards
When an employee's procurement card is lost or stolen, the employee shall immediately notify:
a. The bank issuing the procurement card. Contact information for the bank can be found on the left menu bar of the bank's procurement card management website.
b. The Police if a burglary, robbery, or other crime occurred c. Employee's Department Head
d. Director of Finance or his/her designee
Provide the following information in writing to all parties:
a. Employee name and Department
b. Procurement card number
c. Date the loss was reported to the Police, if applicable d. Date the bank was notified
e. Any purchases made the day the card was lost or stolen Upon notification of lost or stolen card, the Director of Finance or his/ her designee will deactivate the card. Based upon a review by the Director of Finance a new card may be re- issued by the bank. A new account number will be assigned to the employee's new card.
De -Activating Cards
When an employee with a Procurement Card leaves the employment of the City, the following procedures shall be followed:
a. The employee shall surrender their procurement card to their Department Head. b. The employee shall turn in all receipts for purchases made within that month to their Department Head or his/her designee for processing. c. The Department Head is responsible for collecting the card and delivering the surrendered card to the Finance Department to be destroyed. d. The Department Head or his/her designee is responsible for notifying the
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e. Finance will update the Procurement Card Request & Authorization Form (Attachment 1) with the date the card was surrendered and the signature of the supervisor accepting the surrendered card.
f. Once the card has been de -activated and final signatures and dates have been added, the Finance Department should route a copy with all signatures to the Human Resources department for insertion into the employee's personnel file.
g. The Finance department will monitor the ongoing transactions on that account for sixty (60) days to check for recurring charges that may need to be transferred to another card.
Emergency Purchases
If an emergency purchase is required and a procurement card is used, the employee making the purchase, or their department head shall follow the established procedure below to report the purchase to the Finance department.
Since emergency purchases do not normally provide the City an opportunity to obtain competitive quotes or properly encumber funds committed, sound judgment shall be used in keeping such orders to an absolute minimum. In addition, the following requirements shall apply:
a. Finance shall be contacted as soon as possible for an advance purchase order number, which may be given verbally, to cover the emergency transaction. If unable to contact Finance, place the order and contact Finance the next workday.
b. A completed purchase requisition shall be submitted to Finance within two (2) working days, or as soon as the information is available. All purchase requisitions for emergency purchases shall be signed by the appropriate department head.
c. Documentation explaining the circumstances and nature of the emergency purchase shall be submitted by the appropriate Department Head or designee as follows:
1. Purchases less than $5,000: Use standard purchasing procedures.
2. Purchases in the amount of $5,000 - $40,000: Require the approval of the City Administrator.
d. If the emergency purchase causes a budget line item to exceed the approved budget, it shall be the responsibility of the department requesting the
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Failure to comply with City policy may result in the revocation of authorization to use the City procurement card and may result in progressive discipline including termination of employment.
Attachment 1 - Procurement Card Request & Authorization Form Attachment 2 — User Agreement for City Issued Procurement Card Approved: Date:
City Administrator
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08/30/2016
Revised 9/2024
25 EMPLOYEE/PERSONNEL MATTERS Policy No. 344
TRAVEL AND MEETING ALLOWANCES
It is necessary for the City's elected, appointed officials and employees to be well informed regarding current developments in local government. Relevant training, conferences, meetings sponsored by local government associations, professional societies, training specialists, universities and colleges, provide such information. City Officials are encouraged to attend and participate in conferences, meetings, etc., dealing with subject matter appropriate to their respective functions in the City government.
Funding for staff development is included in the annual budget for this purpose.
To facilitate attendance and participation, the City Administrator shall be responsible for reviewing available information on conferences and meetings and recommend, in the annual preliminary budget, those that should be attended by City officials. In turn, said recommendations shall be reviewed by the City Council by the adoption of the annual budget.
This policy establishes procedures to ensure uniform and fair payment of expenses while traveling on City business. The policy applies to all full and part time City Staff as well as elected and appointed officials. It is the responsibility of each employee and/or representative of the City of Placentia to be fiscally responsible and consider the financial impact of their choices while attending training and/or traveling on behalf of the city.
GENERAL REQUIREMENTS
These requirements apply to all City -paid travel:
1. ADVANCE APPROVAL
Payment for out-of-town travel will be authorized only after advance approval has been given. Specific approval authority for each category is outlined in later portions of this policy. A standard travel and meeting expense form is to be used by all individuals requesting authorization to travel. The form contains information describing the funds requested, authorization to travel, and accounting for funds expended following completion of travel. City staff will seek advance approval from their Department Head and/or City Administrator; the City Administrator shall seek approval from the Mayor; elected officials will seek advance approval from the Mayor, or by vote of the City Council; and the Mayor shall seek advance approval from the City Administrator and/or by vote of the City Council. For elected officials and the Executive Management Team, the Director of Finance shall review all travel requests in advance to confirm compliance with this policy.
2. LODGING
The cost of lodging accommodations for approved conferences; seminars or meetings will be paid directly by the City, either by check or City credit card, or by employee personal credit card for reimbursement after return from travel.
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26 EMPLOYEE/PERSONNEL MATTERS Policy No. 344
Hotel and motel charges shall be based on single occupancy rates. The City will not pay for or reimburse employees for lodging expenses incurred for additional guests. In instances where conference hotels are filled, the employee should attempt to secure comparable rates at the nearest hotel.
Pre -conference lodging will be allowed for travel requiring extensive travel time and must be identified in the travel request, supported by a copy of the conference schedule and approved by the Department Head and/or City Administrator. Note: Starting time is for actual conference, not registration or optional tours or conference sponsored events unless related to professional development as approved by Department Head and/or City Administrator.
Lodging will be allowed for travel if the following conditions are met:
• The length of the conference is more than one day, extensive travel time is required or the distance is more than 100 miles from City Hall or the employee's residence, whichever is more or,
• If the employee's presence is required for activities before or after the regular conference hours.
Lodging will be paid at actual cost, but may not exceed the maximum group rate published by the conference or activity sponsor, provided that rooms at the group rate are available at the time of booking. If a group rate is not available at a conference hotel, employees shall book lodging at comparable accommodations (similar hotel star rating). When making lodging reservations, employees shall inquire about local exemptions for transient occupancy taxes (TOT) as some cities exempt travelers on city government business from the local tax, and/or provide government/ group rates when traveling on City business.
3. REGISTRATION
Registration fees for a conference or seminar will be paid directly by the City at actual cost. Early registration is encouraged whenever possible to take advantage of early registration discounts. Official literature indicating the cost of registration and conference or seminar dates must accompany the expense reimbursement form requesting payment and/or the City procurement card statement containing the expense.
4. TRANSPORTATION
Transportation will be paid at actual cost, with use of air, train, private car or bus selected on the basis of the most reasonable and appropriate method, taking into consideration distance, time and total costs to the City. Government or group rates shall be used whenever possible. When traveling by air, all flights shall be booked at coach class or an equivalent level. Upon a showing of great need or lack of other airline jet service, the City
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27 EMPLOYEE/PERSONNEL MATTERS Policy No. 344
Aministrator may authorize a more expensive fare. Elected Officials and the City Administrator may book flexible fare flights that allow for flight changes without additional costs, even when flexible fares are more expensive.
Airline tickets shall be paid directly by the City, either by check or City credit card, or personal credit card for reimbursement. If an employee has been issued a City credit card but chooses to use his or her personal credit card, reimbursement will be made with proper documentation after attendance at the conference, seminar or meeting. If an employee does not have a City issued credit card and uses their personal credit card for the purchase of airline tickets they may receive payment with proper documentation prior to attendance of the conference. If the airline tickets are not used, it is the employee's responsibility to reimburse the City within five (5) calendar days of notification of cancellation.
When rental vehicles or ride -sharing services are used, the least expensive vehicle practical will be used. In cases where more than one employee is attending the same event, employees will normally be expected to travel together when feasible and share the rental vehicle.
5. PER DIEM
The per diem is a daily allowance that covers the cost of all meals and incidental living expenses after arriving at the destination. Itemization of individual expenses covered by the per diem is not required for City staff. Elected officials must collect and submit receipts for all expenses, including meals covered by the per diem, in compliance with AB1234.
The per diem amount shall be the U.S. General Services Administration (GSA) per diem rate for the travel destination and is the same for all employees and elected officials regardless of payment method.
Meal Allowance: For City staff, receipts are not required if you stay within current IRS per diem regulations. Elected officials must collect and submit receipts for all meals, even when covered by per diem, in compliance with AB1234. Receipts are required to substantiate expenses over the current IRS per diem regulation. While discouraged, under special circumstances employees may receive a meal allowance in excess of GSA per diem regulations, and will be reimbursed upon recommendation of Department Director and approval of the City Administrator. Nothing shall prevent the City Administrator from hosting meals for dignitaries or other parties when it serves a legitimate governmental purpose, provided it is approved in advance by the Mayor or a majority of the City Council. In unusual circumstances where the Mayor's pre -approval cannot be obtained, the City Administrator may still host the event, but shall be required to notify the Mayor in writing within 24 hours of the meal, its purpose, and its benefits to the City.
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28 EMPLOYEE/PERSONNEL MATTERS Policy No. 344
In calculating the meal allowance for partial days, the following guidelines should be used:
Departure
If you depart after 9:00 a.m., you may not claim meal expenses for breakfast for that day.
If you depart after 2:30 p.m., you may not claim meal expenses for breakfast and lunch for that day.
If you depart after 8:00 p.m., you may not claim meal expenses for that day.
Return
If you return after 9:00 a.m., you may claim the breakfast allowance.
If you return after 2:30 p.m., you may claim the breakfast and lunch allowances.
If you return after 8:00 p.m., you may claim expenses for the full day.
Regardless of departure/ return time employees may receive the full value of "incidental expenses as determined by the U.S. General Services Administration (GSA) for the location they're traveling to.
Tips/ gratuities will be reimbursed up to 20% of the total receipt amount, excluding tax.
6. MILEAGE — USE OF PERSONAL AUTO
Within a radius of fifty (50) air miles, personal automobile or City vehicle may be used.
If personal automobile is used, reimbursement will be made at the current rate set by the Internal Revenue Service (IRS) for actual business mileage traveled. Beyond the fifty (50) air mile radius, personal automobile or City vehicle may be used only with the advance written permission of the City Administrator upon a showing that the interests of the City are best served thereby. Employees may be reimbursed for parking costs and incidental toll charges if its determined the toll road is the most advantageous route in either cost (mileage) or time -savings. Receipts for parking and toll charges are required for reimbursement. The City will reimburse employees for base toll fare only. Any fines or penalties charged due to late payments will be the responsibility of the employee.
In cases where more than one employee is attending the same event, employees will normally be expected to travel together when feasible and mileage reimbursement will be for one vehicle only.
This mileage allowance applies to authorized use of an employee's personal vehicle while on duty. Employees receiving monthly auto allowances may not receive mileage reimbursement in addition to the monthly allowance. The City will not reimburse employees for damage to a personal vehicle or maintenance costs resulting from the use of a personal vehicle for City related travel.
If the travel occurs on a workday, and an employee travels directly from their residence
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29 EMPLOYEE/PERSONNEL MATTERS Policy No. 344
to the conference site, an employee shall only be reimbursed up to the total miles between the employee's residence and the conference site, or the employee's work site and the conference site, whichever is less. On non -workdays, the employee may be reimbursed for the total miles traveled.
7. FAMILY MEMBERS OR GUESTS TRAVEL
The City shall not pay for the travel expenses of family members or guests. If family members or guests accompany an individual on City -paid travel, arrangements must be made for separate billing of family members or guests' travel expenses.
8. SETTLEMENT OF TRAVEL ADVANCES
Within thirty (30) calendar days following completion of City -paid travel, employees must submit a reconciliation of all travel expenses.
9. UNAUTHORIZED EXPENSES
The following items of a personal nature, even if they are incurred in conjunction with expenditures that are subject to reimbursement, are not reimbursable: movies, entertainment, premium television services, alcoholic beverages, dry-cleaning, spas, gyms, barber, magazines, shoe shines, travel insurance, purchase of clothing or toiletries, loss of tickets, fines or traffic violations, excess baggage costs, golf related expenses, personal losses incurred while on City business, repairs to personal vehicles, office equipment and other items of a personal nature. Optional tours, banquets or other activities not related towards professional development offered through the conference, but as an additional cost to registration, are solely at the discretion of the employee and will be considered as a personal expense. The department head and/or City Administrator shall determine what constitutes professional development. • Political or charitable contributions or events unless it is to a 501(c)(6) Business League, Chamber of Commerce are unauthorized expenses.
• A local elected official purchasing meals for third parties, such as constituents, legislators, and private business owners at meetings held to conduct City related business is an unauthorized expense.
The use of a City credit card to pay for unauthorized or personal expenses is not allowed.
If unauthorized expenses have been paid by the City, the employee will be responsible for reimbursement to the City within five (5) days. If the unauthorized charge was on a City credit card, the employee should submit to Finance a check made payable to the City of Placentia.
10. DISCRETION
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30 EMPLOYEE/PERSONNEL MATTERS Policy No. 344
This policy does not claim to have addressed all contingencies and conditions. Any necessary and reasonable expense that may from time -to -time be justified due to circumstances or opportunities for the City will be honored upon authorization by the department director and approval of the City Administrator. Those expenses will be reimbursed to the employee with adequate documentation and justification.
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31 CITY OF
PLACENTIA
TRAVEL &
PROCUREMENT CARD
POLICY UPDATE
October 1, 2024
I'Lf r' i rifle_ Ci Vic CE1 IT-'.
32 BACKGROUND
• The City's Travel Policy No. 344 was last updated on March 7, 2023 • The City's Procurement (Credit) Card Policy No. 445 was last updated 9/28/16
• During budget discussions in June, City Council requested staff bring back the Travel and Procurement Card policies for discission 33 34
• It is necessary for City's elected, appointed officials and employees to be well informed regarding current developments in local government.
• Policy needed to establish procedures to ensure uniform and fair payment of expenses while traveling on City business.
• Confirms responsibility of each employee and representative of the City of Placentia to be fiscally responsible and consider the financial impact of their choices while attending training or traveling on behalf of the City.
35 • Advance approval required
• Ties per diem rates to U.S. General Services Administration (GSA) rate for destination
• Outlines what meals included in per diem based on employee's departure time
• Outlines when lodging is allowable
• Addresses gratuity amount (up to 20%)
• Sets expectation for employees to share rental car and/or rideshare expenses whei traveling to sarre destination
• Identifies unauthorized expenses such as:
• Alcoholic beverages, dry-cleaning, spas, gyms, barbers, personal losses incurred while traveling, excess baggage fees, purchase of clothing and/or toiletries.
36 • Per diem is a daily allowance that covers the cost of all meals, incidental living expenses, and any ground transportation (i.e. taxis) after arriving at the destination.
• Given increased costs in ground transportation and meals, staff proposes removing this language in the definition of per diem.
• Per diem is a daily allowance that covers the cost of all meals, incidental living expenses, any ground transportation (i.e. taxis) after arriving at the destination. • Government Code § 53232.2 (c) states an agency's policy may also specify the reasonable reimbursement rates for travel, meals, ani Iodg ng, and other actual and necessary expenses. If it does not, the local agency shall use the Internal Revenue Service rates for reimbursement of travel, meals, lodging. 37 • Examples of 2024 per diem rates are:
San Diego
$74
Las Vegas
$69
Sacramento
$69
Palm Springs
$69
San Francisco
Washington D.C.
$79
$79
38 • Per AB1234, elected officials must submit receipts for all expenses, even when taking per diem.
• Elected officials and City Administrator may book flexible airline fares that allow for flight changes without additional costs, even when flexible fares are more expensive.
• Clarifies that any fines or penalties resulting from delayed payment of toll road charges are the responsibility of the employee. City will pay base toll charge only.
39 PROCUREMENT CARD POLICY
POLICY NO. 445
City Administrator Approval
• To establish a framework for appropriate use of Procurement Cards. Procurement Cards are city-issued credit cards issued from a financial institution selected solely by the City. • Procurement cards may be used to expedite smaller purchases of supplies and materials, subscriptions, memberships, training and certain travel expenses.
• Policy applies to all employees who are issued a City of Placentia procurement card
• Employees issued procurement cards must sign User Agreement acknowledging understanding of policy
41 • Emphasizes purchases made on procurement cards must adhere to City's Purchasing Policy No. 430
• Disallow the use of City issued procurement cards (credit cards) for the use of meals while traveling.
• Anyone traveling on behalf of the City would be given per diem at the GSA/ IRS per diem rate for the travel destination.
• Provides greater oversight for adherence to current policy provision that, "per diem amount shall be the same for all employers regardless of payment method"
• Greater transparency and fiscal responsibility
42 • Single transaction spending 1
1 Management Level
General employees
Mid -Managers
Department Heads
City Administrator
Current Approval Limit
$750
$1,000
$2,500
$5,000
Proposed Approval Limit
$1,000
$2,500
$5,000
$5,000
• Departments may request different spending limits based on employee's role. Justification must be provided and approved by the Director of Finance.
• Purchases must still follow Procurement Policy and any purchases greater than $2,500 must have a purchase order.
43 • Reconciliation process updated in the policy to reflect change from paper statements/ receipts to online procurement card management system.
• Expands the list of unauthorized purchases to include:
• Ammunition and weapons
• Legal fees
• Insurance
• Purchase of movies, entertainment, premium television services, dry- cleaning, spas, gyms, salon/barber services, magazines, shoeshines, travel insurance, purchase of clothing or toiletries, loss of tickets, fines or traffic violations, excess baggage costs, persor al losses incurred while on City business, repairs to personal vehicles, office equipment and other items of a personal nature.
44 • Purchase of movies, entertainment, premium television services, dry- cleaning, spas, gyms, salon/barber services, magazines, shoeshines, travel insurance, purchase of clothing or toiletries, loss of tickets, fines or traffic violations, excess baggage costs, personal losses incurred while on City business, repairs to personal vehicles, office equipment and other items of a personal nature.
• Optional tours, banquets or other activities not related to professional development offered through a conference, but as an additional cost to registration, are solely at the discretion of the employee and will be considered as a personal expense.
• Meals consumed by employees while traveling on City business (See Travel Policy No. 344). Those expenses shall be covered by a per diem. • Mobile payments such as Venmo, PayPal, Zelle, Apple Pay, etc. 45 • Review the proposed Travel Policy No. 344 and direct staff to make amendments to the policy as discussed; and
• Direct staff to incorporate updates discussed and bring back to City Council for approval; and
• Review and discuss updated Procurement Card Policy No. 445; and • Direct City Administrator to approve updated Policj No. 445 under his authority.
46 47