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3.H. Travel Policy City of Tigard, Oregon City Council Travel Policy Effective Date: June 27, 2017 Approved: 6/27/2017 Signature: -;�� G . SUMMARY 1. General Provisions 2. Compliance and Accountability 3. Definitions Out-of-Town Travel 4. Pre-Authorization 5. Travel Methods 6. Lodging 7. Meals 8. Payment Methods 9. Personal Expenses 10. Travel Reconciliation 11. Compliance Auditing Local Travel 12. Local Travel Methods 13. Local Meals 1. GENERAL PROVISIONS 1.1. Purpose of Policy. The purpose of this policy is to provide guidelines to members of the City Council (Council) for payment of travel expenses in a cost-effective and efficient manner ensuring the best result for the City. 1.2, Applicability. Ibis policy applies to Tigard's City Council and is to be adhered to by all members of Council. 1.3. The City's Financial and Information Services Department shall administer the travel policy and shall periodically review travel and training records to ensure policy compliance and provide any necessary training to departments on the implementation of the policy. 1.4. The City Council and City Manager's office shall ensure that each member of Council complies with the policy,and ensuring expenditures are appropriate and directly related to City business. Questions regarding the intent or application of this policy document shall be directed to the City's Financial and Information Services Director. 1.5. The City Council shall have final authority for administering, interpreting, and applying the terms of these procedures. City Council Travel Policy 11 P a g e 1.6. Personal Expenses. The City,with very limited exception, shall not pad-for any personal expenses incurred by a member of Council during City business travel. For example, Council member will not be reimbursed for personal grooming items,parking tickets, entertainment expenses, etc. 2. COMPLIANCE AND ACCOUNTABILITY 2.1. All members of Council must comply with the provisions contained herein. Periodically, the City's Finance and Information Services Department rnay perform a review of the C.ty�s travel records to ensure co...pli-Icc w-i- this policy. The Finance and information Services Department,working with the City-Council and the City Manager's Office,may implement appropriate and progressive sanctions related to misuse. All Council members must fully comply with requests for records and documentation supporting all travel expense claims. 2.2. Council members may be liable for improper use of public funds. As public officials, Council members that order, authorize or cause to be made any expenditure in violation of City policies, state statutes,rules, or procedures can and will be held personally financially liable for inappropriate expenditures. 3. DEFINITIONS The following terms may be used throughout these policies: 3.1. Actual. The actual meals or lodging cost supported by receipts. The City's policy is to pay actual costs for lodging up to the Federal per diem rate for the location. 3.2. Conference/Training Meal. Any meal provided,through the registration process,by a conference or training. 3.3. Contracted Travel Agency. The travel agency under contract with the City to provide travel related services. Corporate Travel Management is the City's current Contracted Travel Agency. 3.4. Council Member. An individual elected to either the office of Mayor or City Councilor for the City of Tigard. 3.5. Council Member Travel. Travel by Council member on official City business. 3.6. Frequent Flyer Miles. Credits acquired when making qualified air travel purchases. It is the City's policy that any Council member (or any employee or agent of the City) shall not earn any Frequent Flyer Miles while on City business. 3.7. Incidental Expense. Small costs associated with travel. Incidental Expenses include,but may not be limited to: Gratuities,taxi fare,work related mailing costs or phone charges, etc. 3.8. Itinerary-Airfare. Information provided by an airline or travel agency showing the traveler's name, dates of travel, class of travel, and travel route. City Council Travel Polic; 2 1 P .�g e 3.9. Local Travel. Travel that is not overnight and/or less than fifty (50) miles from City Hall. Both criteria must be met to be considered Overnight Tra-rel. 3.10. Meals. Standard breakfast,lunch, or dinner eaten by a Council member during City business travel. 3.11. Mileage. The distance traveled via personal automobile by a Council member during travel. The City calculates mileage during travel from Tigard City Hall, not the Council member's home. To development*he reasonable estimate of mileage, the City shall use an online travel/map site such as MQquest or Google Alaps. 3.12. Official City Business. Business, and any travel associated with it, that directly provides a benefit to the City. 3.13. Overnight Travel. Any travel that requires a Council member to stay overnight. A conference or training must be at least 40 miles away from the City to justify an overnight stay. Overnight hotel stays in locations that meet the definition of local travel are a taxable benefit under IRS rules.Applicable taxes will be withheld from the individual councilor's next stipend check. 3.14. Per Diem Allowance. The allowance for lodging,meals and incidental expenses established for the travel destination as established by the U.S. General Services Administration (GSA). The City's policy is to pay actual lodging expenses up to the GSA rate and a daily per diem for meals equal to the GSA rate for the destination city. 3.15. Pool Vehicle. A City-owned vehicle available for"check out"by any employee, elected official, or agent of the City. 3.16. Purchasing Card. A City-issued credit card that is the preferred means of payment for travel expenses other than meals. 3.17. Receipt. A document detailing an expense incurred. To be valid,a receipt must provide the name and address of the business,the date of the purchase,an itemized description of the goods or service purchased,and the amount of the purchase. For lodging expenses, the receipt must also include the name of the guest,the number of guests,the dates occupying the room, the room number,the room rate, and the lodging tax. 3.18. Travel Pre-Authorization Form. A Departmental form that may or may not be required prior to any travel. The City Council and City Manager shall determine the best way to document pre-authorization for City Council travel. 3.19. Travel Purchasing Card. A generic purchasing card that can be checked out prior to travel by a Council member who does not have a City-issued purchasing card. 3.20. Travel Reconciliation Statement. A City-required form that must be completed within five (5) full business days upon return from any overnight City business travel. City Council Travel Policy 3 1 ?a g e 3.21. Travel Time. The amount of time that is required by a Council member to travel to and from a conference or training. 3.22. U.S. General Services Administration(GSA) Per Diem Rates. The estimated daily cost of lodging,meals, and incidentals for various cities that is used by the City as the maximum actual costs to cover during travel. OUT OF TOWN TRAVEL 4. PRE-AUTHORIZATION Pre-Authorization shall be a Departmental responsibility. The City Council shall develop a pre- authorization procedure and train their staff on these procedures. Pre-Authorization may be required by a Department for any travel but especially in the case of travel with overnight stay, travel requiring air travel,or travel where lodging exceeds the daily allowance. 4.1. Pre-Authorization Form. The City Council shall have a Pre-Authorization Form available for staff use. The FIS Department has created a generic form that may be used by the City Council or the Council may elect to create their own form that best meets their needs. 4.2. Pre-Authorization Filing. The City Council shall be responsible for retaining a file of the Department's travel pre-authorization documents. This file shall include approved and denied travel information. 4.3. Travel Coordinator/ Point of Contact. It is the recommendation of this Policy that the City Council designate a Travel Coordinator or single point of contact for employees to refer to for guidance and questions. The FIS Department shall have a Coordinator or single point of contract for any City business travel information and guidance. 5. TRAVEL METHODS The City shall require the most direct and cost effective means of travel for a Council member attending any conference or training. The costs of means of travel,both in dollars and requirements of staff, shall be weighed with the most beneficial to the City being utilized. 5.1. Auto Travel. Auto travel is the most common means of transportation used during City business travel. 5.1.1 City Pool Vehicle. Employees are strongly encouraged to use the City's Pool Vehicles during local travel. These vehicles may be reserved and checked out during the employee's travel dates. 5.1.1.1. Non-City Employee Ride-Along. Per the City's Personnel Policy: "Family members or other non-City employees shall not be transported in city vehicles except as specifically authorized by the department director or consistent with department policy or in cases in which the city-vehicle is regularly assigned to the employee as a provision of an employment contract" City Council Travel Policy 4 1 P a g P As such, family member or other non-City employees may accompany an employee in a City-owned vehicle during City-related travel with the appropriate approvals. 5.2 Personal Vehicle. Council members may use their own vehicles for City travel. Use of a personal vehicle during City travel shall be authorized during the pre-authorization process in the Department. 5.2.1 Insurance. Council members that use their private vehicle for City business are required to have personal automobile liability insurance to provide the primary coverage for any accidents involving that vehicle. Documentation of said coverage must be on file with the City's Risk Management Office. 5.2.1.1 Mileage Reimbursement. When a Council member uses their personal vehicle for City travel, the City shall reimburse the Council member for mileage up to,but not more than,the Federal per mile reimbursement rate. Total allowable mileage shall be calculated from Tigard City Hall to the lodging location and back. If required,additional mileage may be granted under certain circumstances. No other means of fuel or mileage reimbursement shall be approved by the City. 5.2.1.1.1 The City shall use an online travel/map site such as MapQuest or Google Maps to develop the total allowable mileage distance. 5.3 Air Travel. The City shall pay actual cost for a Council member's City business travel. All Council members shall utilize coach when traveling commercial airline. Reservations, where possible, should be made at least fourteen (14) or more days in advance to take advantage of any and all available discounts. Increased fees related to late booking may be disallowed unless documented with a sound business reason. Council members may at their own expense pay to upgrade their airline accommodations or alter their flight itinerary for personal business. 5.3.1 Contracted Travel Agent. Council members are strongly encouraged to utilize the City's Contracted Travel Agent for air fare during City travel. 5.3.1.1 Government Air Fare. The City's Contracted Travel Agent is authorized to provide the City with government air fare ("City Pairs")which are contracted, discounted,unrestricted,and one-way fares that require little advance reservation and have no cancellation or transfer penalties. Council members should seek to use these fares in order to maximize the benefits to the City. 5.3.1.2 Booking. This City is able to book air transportation through the Contracted Travel Agent either online or through an agent via the telephone. Council members should take every effort to use online booking to reserve air travel to maximize cost savings for the City. Cit;Council Travel Policy 5 1 i a g e 5.3.2 Discount Travel Sites. Council members may,with documentation of the reasoning,use discount travel sites such as Expedia,Travelocity; Hotwire, Orbitz, or Priceline. 5.3.3 Airline Direct Booking. Council members may, with documentation of the reasoning,book air transportation directly with the airline. As this tends to be the most expensive option,it should be the last option and have solid documentation of the reason for the expense. 5.3.4 Cancelled/Missed Flights. Should a non-refundable flight need to be cancelled for either City-related business or a medical or family emergency beyond a Council member's control, the City,in so long as documentation and approval are placed in the travel file, shall incur the cost of the air fare. If the flight is cancelled or missed due to any neglect, mistake, or other fault of the registered Council member, the Council member shall bare the cost of the ticket and all associated costs. 5.4 Rental Cars. The City will pay actual for rental vehicles when it is found to be an economical and efficient means of transportation for an employee during travel. Authorization for a rental vehicle must be obtained during the pre-authorization process for the travel. 5.4.1 Contracted Travel Agent. Council members are strongly encouraged to utilize the City's Contracted Travel Agent for rental vehicles during City travel. 5.4.1.1 Contracted Rental Car Company. The City has a Contracted Rental Car Company and the City's Contracted Travel Agent is authorized to book against this agreement. 5.4.1.2 Booking. This City is able to book rental vehicles through the Contracted Travel Agent either online or through an agent via the telephone. Council members should take every effort to use online booking to reserve air travel to maximize cost savings for the City. 6 LODGING The City shall pay true actual cost,up to the GSA daily per diem rate 6.1 Receipts. A detailed receipt is required for any lodging incurred during an employee's travel. For lodging expenses, the receipt must detail the following: 6.1.1 Name of the hotel 6.1.2 Address of the hotel 6.1.3 Name of the guest 6.1.4 Number of guests 6.1.5 Dates occupying the room 6.1.6 Room number 6.1.7 Total cost of the stay 6.1.8 Room rate 6.1.9 Lodging tax,and City Council Travel Policy 6 1 ' a g e 6.1.10 Breakout of individual charges (room service,parking,etc). 6.2 Lodging Per Diem Allowance. Lodging expenses are paid by the City at actual cost up to the specific GSA daily maximum allowable rate in effect at the time of travel for the specific area or locality. 6.2.1 The GSA rates can be found at this link: GSA Domestic Per Diem Rates. 6.2.2 The City Council shall have the authority to approve lodging expenses over the GSA daily maximum allowable rate when unusual conditions exist. The cost overage shall require written documentation by the traveling Council member detailing the reason for the higher expenditure. This documentation must be included with the final travel reconciliation. 6.3 Conference/Training Official Hotel. If a Council member attends a conference or training and stay at a conference hotel where the conference or training is being held,the City shall cover,within reason and with prior approval,all actual lodging costs if the rate exceeds the GSA lodging per diem allowance for the city. If this exception is granted, the Council member must book the cheapest available room or personally pay the difference between the room they book and the room with the lowest rate. This exception serves to save the City additional incidental costs such as a rental car or other transportation fees. 6.4 Alternative Lodging. The intent of this section is to reimburse Council members that use their personal travel trailer or motor home during official City travel and should result in an economic benefit to the City. The daily maximum allowable reimbursement rate for all alternative lodging shall be$25. It is intended that the alternative lodging reimbursement rate apply for any overnight City travel. 7 MEALS As a meal allowance during City related travel, Council members shall receive a daily per diem equal to the GSA daily rate for the destination city. 7.1 Multiple Locations/Single Rate. The City shall use a single per diem threshold rate for an entire day. If a Council member travels to more than one location in one day, the per diem allowance shall be for the location in which the Council member spends the night. On the final day of travel,the per diem threshold shall be for the location in which the Council member stayed the last night. 7.2 U.S. General Services Administration Daily Rate (GSA). The daily meal per diem shall be equal to the U.S. General Services Administration's (GSA) established daily rates for the travel destination City. 7.2.1.1 The GSA rates can be found at this link: GSA Domestic Per Diem Rates. 7.3 Conference/Training Provided Meals. VZ'hen meals are provided by the conference/training and paid for through the Council member's registration, the daily per diem shall be reduced for that particular meal. See Section 8.4 for a breakdown of the meal percentages. City Council Travel Policy 7 1 p -g e 7.3.1. If the meal is an optional piece of the conference or training registration process, the Council member shall have the choice to participate in the meal or,instead, to receive the meal as part of the daily per diem. 7.4. Meal Allowance Breakdown. The City shall use the following meal breakdown: 7.4.1. Breakfast. Equals 25%of daily allowance. 7.4.2. Lunch. Equals 25% of daily allowance. 7.4.3. Dinner. Equals 50%of daily allowance. 7.5. Travel Day Meals. The City shall provide a percentage of the daily per diem on travel days according to the following schedule (per IRS rules the City cannot pay more than 75% of the maximum daily allowance during travel days): Outbound(Leaving) 7.5.1 Prior to Noon—75%. When a Council member leaves on travel between prior to Noon the Council member shall be entitled to 75% of the daily per diem. 7.5.2 Between Noon and 7:00 p.m. —50%. When a Council member leaves on travel between Noon and 7:00 p.m. the Council member shall be entitled to 50% of the daily per diem. 7.5.3 After 7:00 p.m.—0%. When a Council member leaves on travel after 7:00 p.m. the Council member shall not be entitled to any percentage of the daily per diem for that day. Inbound(Returning) 7.5.4 Prior to Noon—25%. When a Council member arrives home from travel between prior to Noon the Council member shall be entitled to 25% of the daily per diem. 7.5.5 Between Noon and 7:00 p.m.—50%. When a Council member arrives home from travel between Noon and 7:00 p.m. the Council member shall be entitled to 50% of the daily per diem. 7.5.6 After 7:00 p.m. —75%. When a Council member arrives home from travel after 7:00 p.m. the Council member shall be entitled to 75 of the daily per diem. 7.6 Allowance Paid to Council Member in Advance. Council member shall receive their meal allowance prior to their departure. Reimbursement shall be in accordance with the Accounts Payable check printing schedule and Council members are responsible for ensuring their meal allowance check is received before departure. 7.7 Alcohol. At no point or under any circumstance shall the City pay any alcohol expense incurred during a meal or travel. Any alcohol which is purchased by a Council member must be paid for at the time by the Council member and must be on a separate check. Cit;-Council Travel Policy 8 1 P --.g e 8 PAYMENT METHODS The City's preferred method of payment during City travel is a City Purchasing Card. Other means of payment shall remain available but every effort must be taken to use a purchasing card then at all possible. 8.1 Purchasing Cards. The City preferred mean of purchase during City travel. The Purchasing Card is a City-issued MasterCard that can be used neatly anywhere MasterCard is accepted. Many employees,including Council members, have been issued an individual Purchasing Card and it is this card that should be used by the Council member during City travel. If a traveling Council member has not been issued an individual Purchasing Card, Travel Cards are available for issuance during travel. Follow the City's established procedures to utilize the Travel Cards. 8.2 City Check. Under a limited number of situations, a City-issued check may be used to pay for a portion of the travel costs. A traveling Council member's meal allowance per diem shall be processed in advance of travel under this method. Council members shall follow the City's established procedures,which shall include documenting the reasoning for a check rather than a Purchasing Card,to obtain a travel-related check. 8.3 Council Member Reimbursement. Under rare circumstances,and with detailed documentation, the City may directly reimburse a Council member for costs incurred during travel. 9 PERSONAL EXPENSES The City,with very limited exception, shall not pay for any personal expenses incurred during City business travel. 9.1 Combining Personal Travel with City Business Travel. The City's policy for business travel does allow for combining personal travel with business travel with additional rules. 9.1.1 Personal Portion of Trip. If a Council member combines personal travel with City business travel, the City will pay only the actual costs associated with City business, any additional cost shall be incurred by the Council member. 9.1.2 Airline Costs. When a Council member combines personal travel with City business travel and airfare is required, the City shall pay no more than the lowest cost of round-trip coach airfare for the days that the City business would have required. Any additional cost due to an extended personal stay shall be borne by the Council member. 9.2 Alcohol. See Section 7.7. 9.3 Entertainment Expenses. The City shall not pay,at any time, for any entertainment expenses incurred by a Council member on official City business. Entertainment expenses shall include,but not necessary be limited to, the following. 9.3.1 Movies,including in-room 9.3.2 Health Club/Gym Fees Cit} Council Travel Policy 9 1 P a.b e 9.3.3 Sporting Events 9.3.4 Golf(Including Conference-related Tournaments) 9.3.5 Spa Services Refer to Oregon Ethic Laws for further details on entertainment expenses. 9.4 Personal Grooming Items or Services. At no time,and for no reason, shall the City pay for any personal grooming items or services during a Council member's time on City business travel. 9.5 Personal Phone Calls. No personal phone calls while on travel shall be paid by the City other than the following exception: 9.5.1 Personal telephone calls to immediate family members or significant others to confirm the traveler's well-being while on overnight travel are allowed under this policy. The Council member shall be allowed one phone call a day while on travel for not more than ten (10) minutes. The City does encourage the traveler to use a personal cell phone in lieu of this personal call allowance when at all possible. 10 TRAVEL RECONCILIATION Within five (5) business days of return from any City business travel a Council member must submit to the FIS Department's Accounts Payable Office a completed and authorized Travel Reconciliation Statement. The City shall develop guidelines to assist Council member through the travel reconciliation process. 11 COMPLIANCE AUDITING The City's FIS Department shall conduct routine review of a Department's travel records to ensure compliance with all aspects of this Travel Policy. The FIS Department,working with the City Manager's Office,may implement appropriate and progressive sanctions for inappropriate use of City funds related to travel. All Council members must ftilly comply with requests for records and documentation supporting any and all travel expenses. LOCAL TRAVEL 12 LOCAL TRAVEL METHODS 12.1 PersonalVehicle. The City may authorize Council members to use their own vehicles for City travel when it is in the benefit of the City. Use of a personal vehicle during City travel must be authorized prior to a Council member utilizing their personal vehicle for business purposes. 12.2 Insurance. Council members that use their private vehicle for City business are required to have personal automobile liability insurance to provide the primary coverage for any accidents involving that vehicle. Documentation of said coverage must be on file with the City's Risk Management Office. 12.3 Vehicle Stipend. Council members'vehicle stipend shall cover any travel to and from local meetings. There shall be no additional mileage reimbursement. City Council Travel Policy 10 1 P a g e 12.3.1 Non-City Employee Ride-Along. Per the City's Personnel Policy: "Family members or other non-City employees shall not be transported in city vehicles except as specifically authorized by the department director or consistent with department policy or in cases in which the city vehicle is regularly assigned to the employee as a provision of an employment contract" As such, family member or other non-City employees may accompany a Council member in a City-owned vehicle during City-related travel with the appropriate approvals. 13 LOCAL MEALS Meals that do not include both overnight travel and a distance of more than forty (40) miles from Tigard City Hall shall be considered a local meal in accordance with IRS regulations and are therefore taxable. Local meals should be part of a meeting involving outside agency personnel or be part of a local training or conference event. The City shall allow such meals for Council members with appropriate documentation and approval. 13.1 Reimbursement for Local Meal. Payment for a Local Meal shall be made through employee reimbursement only due to the meals taxable status and no other payment method shall be acceptable. 13.2 Receipts. A document detailing an expense incurred. To be valid,a receipt for a meal must provide the name and address of the business, the date of the purchase, an itemized description of the goods or service purchased, and the amount of the purchase. Summary receipts shall not suffice as proper documentation. 13.3 Local Meal Reimbursement Form. Reimbursements to Council members for taxable meals shall be processed on a Local Meal Reimbursement Form and submitted to Payroll no more frequently than monthly. 13.4 Alcohol. At no point or under any circumstance shall the City pay any alcohol expense incurred during a local meal. City Council Travel Policy 111 1P a g e