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CR 2013-076 Approve Resolution Revising Legislative Policy 2-H, Travel Regulations and Reimbursement PolicyAgusust 5, 2013 m Council Report 2013-076 City Of Hopkln8 APPROVE RESOLUTION REVISING LEGISLATIVE POLICY 2-H, TRAVEL REGULATIONS & REIMBURSEMENT POLICY Proposed Action Staff recommends adoption of the following motion: Move to adopt Resolution 2013-042 revising Legislative Policy 2-H Travel Regulations & Reimbursement Policy. Approval of this motion will revise the language in Policy 2-H to adjust the maximum gratuity that will be reimbursed. Overview Legislative Policy 2-H was last revised in 2012 to adjust the per diem rates. Due to challenges when traveling to major metropolitan areas and the move upwards of the minimum "expected' gratuity by service professionals we are recommending a change to the maximum gratuity the employee will be reimbursed when traveling on city business. City staff is recommending revising Legislative Policy 2-H to allow a maximum reimbursable gratuity of 20%. Primary Issues to Consider • Changes in the service industry Supportin! Information • Resolution 2013-042 • Legislative Policy 2-H — change highlighted in yellow. Christine M. Harkess, CPA, CGFM Finance Director Financial Impact: $ minimal Budgeted: Y/N Y Source: operating budgets Related Documents (CIP, ERP, etc.): Notes: CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 2013-042 A RESOLUTION AMENDING LEGISLATIVE POLICY 2-H TRAVEL REGULATIONS & REIMBURSEMENT POLICY WHEREAS, In August 1987, Legislative Policy 2-H Travel Regulations & Reimbursement Policy was established to provide uniform guidelines on City policies so that actions taken are consistent and fair; and WHEREAS, the City Council reviewed and revised the policy in March 1990, December 2005 and November 2012; and WHEREAS, the City Council has determined that due to changes in the service industry regarding expected gratuities that the maximum reimbursable gratuity for services rendered should be increased to 20% and NOW THEREFORE BE IT RESOLVED, that revises Legislative Policy 6-H, Travel maximum reimbursable gratuity amount. the City Council of the City of Hopkins hereby Regulations & Reimbursements to adjust the EFFECTIVE DATE: This amendment will go into effect on August 6, 2013. Adopted by the City Council of the City of Hopkins this 5th day of August 2013. Eugene Maxwell, Mayor ATTEST: Kristine A. Ludke, City Clerk POLICY 2-H TRAVEL REGULATIONS REIMBURSEMENT POLICIES 1. PURPOSE 1.01, The purpose of this policy is to establish guidelines for the reimbursement of money spent on official city business. 2. OUT-OF-STATE TRAVEL FOR ELECTED OFFICIALS 2.01 The event, workshop, conference or assignment must be approved in advance by the City Council at an open meeting and must include an estimate of the cost of the travel. In evaluating the out-of-state travel request, the Council will consider the following: • Whether the elected official will be receiving training on issues relevant to the city or to his or her role as the Mayor or as a council member; • Whether the elected official will be meeting and networking with other elected officials from around the country to exchange ideas on topics of relevance to the City or on the official roles of local elected officials. • Whether the elected official will be viewing a city facility or function that is similar in nature to one that is currently operating at, or under consideration by the City where the purpose for the trip is to study the facility or function to bring back ideas for the consideration of the full council. • Whether the elected official has been specifically assigned by the Council to visit another city for the purpose of establishing a goodwill relationship such as a "sister - city" relationship. • Whether the elected official has been specifically assigned by the Council to testify on behalf of the city at the United States Congress or to otherwise meet with federal officials on behalf of the city. • Whether the city has sufficient funding available in the budget to pay the cost of the trip. 2.02 No reimbursements will be made for attendance at events sponsored by or affiliated with political parties. 2.03 The city may make payments in advance for airfare, lodging and registration if specifically approved by the council. Otherwise all payments will be made as reimbursements to the elected official. 2.04 The City will reimburse for transportation, lodging, meals, registration, and incidental costs using the same procedures, limitations and guidelines outlined in this policy for out-of-state travel by city employees. Legislative Policy Manual -- Chapter 2-H 3. APPROVAL AND ADVANCES 3.01 Reimbursement for City business related travel, conference, seminar and meeting expenses are intended to refund actual costs incurred by employees and elected officials of the City of Hopkins. 3.02 Cash advances intended to defray costs incurred during authorized travel and prior to submission of a TRAVEL EXPENSE REPORT AND REQUEST FOR REIMBURSEMENT form may be obtained by submitting a REQUEST FOR TRAVEL ADVANCE form to the Finance Department at least seven (7) calendar days prior to a regular Council meeting at which the request for Advance will be considered. 4. ALLOWABLE EXPENSES -LODGING 4.01 Accommodations shall be selected at a reasonable cost consistent with the facilities available and convenient to the location of the conference, seminar or meeting attended. 4.02 Only the costs of single occupancy will be reimbursed. If a double occupancy occurs (i.e. a spouse/guest accompanies the employee) the employee is responsible for the additional cost of double over single occupancy. 4.03 Lodging for the night before the commencement of a conference, seminar or meeting may be claimed. 4.04 Reimbursement for meals and lodging shall be limited to the period of time required if commercial air transportation were used. Generally this includes one travel day prior to the conference and one travel day after the conference. If a conference does not start until the late afternoon or evening, that day shall be considered the travel day. 4.05 Lodging within the metro area will not be reimbursed. 5. ALLOWABLE EXPENSES -TRANSPORTATION 5.01 Allowable transportation costs shall include reimbursement for mileage accumulated on a personal vehicle at the standard IRS rate per mile or the actual round trip coach -class airfare rate, whichever is less. When two or more employees are traveling in one automobile, reimbursement shall be made to one employee. 5.02 Air transportation shall be coach -class unless such service is unavailable. Reservations are to be made in advance at the earliest date to insure the lowest possible fares. "Super Saver" -type rates shall be used if available and appropriate for the particular situation. If the reservation is not going to be used, it must be canceled immediately. 5.03 Airline travel credit. Whenever public funds are used to pay for airline travel by an elected official or City employee, any credits or other benefits issued by any airline must accrue to the benefit of the City. In the event the issuing airline will not honor a transfer or assignment of any credit or benefit, the individual passenger shall report receipt of the credit or benefit to the City Council within 90 days of receipt. 5.04 Local transportation such as taxicab and bus fares to and from the place of lodging and conference, seminar or meeting are reimbursable only if circumstances require such travel. Costs for local transportation not pertaining directly to City business will not be reimbursed. Legislative Policy Manual -- Chapter 2-H 6. ALLOWABLE EXPENSES -MEALS 6.01 Reimbursement for meals while on authorized travel shall include only actual expenditures including tax and tip with a maximum gratuity of 20% when applicable. Receipts for meals must clearly indicate whether the requested reimbursement is for BREAKFAST, LUNCH, or DINNER, and the date of the meal. Detailed meal receipts should be obtained indicating the actual items purchased. Reimbursement will not be provided for any meals which are included as part of registration, tuition or fees. 6.02 Due to the general difficulty in acquiring receipts for meals and incidentals, any official or employee may claim a per diem reimbursement for actual and necessary expenses. The per diem for meals and miscellaneous subsistence expenses for employees who travel on City business shall be $ $66.00. 6.03 The per diem allowance includes all charges for meals, all gratuities and taxes, all fees and tips to bellhops and porters, any laundry and/or cleaning expenses and any other similar expenses. 6.04 Reimbursement is not allowed for alcoholic beverages. 6.05 Reimbursement for actual meal costs that exceed the daily allowance will be made only when documented by receipts. 6.06 If meals are included in tuition or registration fees and/or only a fraction of the day is authorized for travel, the per diem or expense allowance will be reduced as follows, unless documented otherwise: Breakfast - $12.00 Lunch - $18.00 Dinner - $36.00 6.07 Breakfast allowance shall be authorized for metro -Minneapolis departures prior to 8:OOam and dinner allowance shall be authorized for metro -Minneapolis arrivals after 7:OOpm. 7. ALLOWABLE EXPENSES - GENERALLY 7.01 Whenever possible, receipts must accompany claims for reimbursement. Each such receipt shall clearly depict the type of expense incurred, the date of its incurrence, and the purpose of the expense. When using a credit card write the purpose of the expense on the credit slip. If the credit purchase is made over the phone, a record of the amount, purpose, and vendor must be turned into the Finance department. 7.02 Miscellaneous expenses may be authorized, such as business related telephone and tips for bellhops. 7.03 The City shall not pay for any expenses, the costs of which are included in registration for conferences, seminars, or other purposes. 7.04 Spouse/Guest's conference registration or airline tickets may be advanced by the City but must be reimbursed by the employee. The City shall pay no expenses for a spouse/guest who accompanies the employee/city official to a conference/seminar/meeting including the incremental lodging expenses of double over single occupancy rates. Legislative Policy Manual -- Chapter 2-H 7.05 The city will not reimburse for personal telephone calls, rental of luxury vehicles, or recreational expenses such as golf or tennis. 8. EXPENSE REPORTS 8.01 A TRAVEL EXPENSE REPORT AND REQUEST FOR REIMBURSEMENT form shall be submitted to the Finance Department within thirty (30) days of the date of the conclusion of the conference, seminar, or other purpose for reimbursement by person claiming reimbursement. Receipts for expense items, including meals, shall accompany each TRAVEL EXPENSE REPORT AND REQUEST FOR REIMBURSEMENT form. If a paid receipt for a particular item is unobtainable, the TRAVEL EXPENSE REPORT AND REQUEST FOR REIMBURSEMENT form must contain a statement certifying that the claim(s) for that particular item(s) is accurate. 8.02 Any unused portion of a travel advance must be promptly returned to the City. Attendees shall be billed for non -reimbursable expenses paid by the City. 8.03 A copy of the conference registration/brochure shall be submitted with the expense report. Established 8/18/1987 Revised 3/28/1990 Revised 12/20/2005 Revised 11/7/2012 Revised 8/5/2013 Legislative Policy Manual -- Chapter 2-H