Agenda Item No: 1.h
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: October 15, 2024
Submitted by: Jennifer Lampman
From: Finance
Subject:
Update to Policy No. 344 Governing Travel and Meeting Allowances 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 needs minor updating to incorporate requirements of AB1234 that were not included in the last update. Staff presented a draft version of the policy at a study session on October 1, 2024 and was directed by City Council to the bring the policy back for approval without changes.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Approve the proposed updates to Policy No. 344 governing Travel and Meeting Allowances for city staff and elected officials.
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.
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.
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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.
The City Council reviewed and discussed the proposed changes at a study session on October 1, 2024 and directed staff to bring the final policy back to the City Council for approval without changes.
Fiscal Impact Summary:
There is no fiscal impact for the recommended action.
Attachments
PM'344 Travel & Meeting Allowances-Updated.docx
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EMPLOYEE/PERSONNEL MATTERS POLICY NO. 344
TRAVEL AND MEETING ALLOWANCES
It is necessary for the City's elected and 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, and 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's government. Funding for training and related travel 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 and approved by the City Council through 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. 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, reason for the need to travel, appropriate approvals, 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 the employee's personal credit card with reimbursement processed after returning from traveling.
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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: the starting time used for determining the need for pre -conference lodging refers to the starting time for the actual conference, not registration or optional tours or conference sponsored events unless related to professional development and approved by the department head and/or City Administrator in advance.
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 government/ group rates and local exemptions for transient occupancy taxes (TOT) as some cities exempt travelers from the local tax when traveling on City government 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/ seminar dates must accompany the travel and meeting request form requesting approval and/or payment as well as the City credit 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 Administrator may authorize a more expensive fare. Elected Officials and the City
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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. In some circumstances, an employee may use their personal credit card and submit a reimbursement request. 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 GSA 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 GSA 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 their department head 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 twenty-four (24) hours of the meal, its purpose, and its benefits to the City.
In calculating the meal allowance for partial days, the following guidelines should be used:
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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, mileage 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 it's 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 by a toll road agency 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 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
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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 shall submit to Finance a check made payable to the City of Placentia.
10. DISCRETION
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 head and approval of the City Administrator. Those expenses will be reimbursed to the employee with adequate documentation and justification.
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