Vancouver City Council

CITY OF VANCOUVER

Administrative Report

Date:

January 11, 2005

Author:

Esther Lee

Phone No.:

Phone 873-7080

RTS No.:

04803

CC File No.:

1504

Meeting Date:

January 18, 2005

TO:

Vancouver City Council

FROM:

General Manager of Corporate Services/Director of Finance

SUBJECT:

Revised Travel Policy

RECOMMENDATIONS

A. THAT Council approve the revised Travel Policy as set out in Appendix A.

B. THAT Council delegate authority to the Director of Finance, in consultation with the City Manager, to review and update the per diem rates and reimbursable expenses on an annual basis.

CITY MANAGER'S COMMENTS

The City Manager REOMMENDS the approval of the Recommendations.

COUNCIL POLICY

The City's current travel policy was approved by Council on July 28, 1992. On April 18, 1996, Council approved a number of minor administrative changes to the travel policy to clarify the intent of the policy and to improve control over travel costs.

PURPOSE

This report seeks Council's approval of a revised Travel Policy which incorporates changes such as per diem rates and eligible expenditures. The Travel Policy has also been rewritten to make it more concise and easier to understand.

DISCUSSION

The City's current business travel policy was approved by Council in 1992 and last revised in 1996. The policy was designed to:
· Minimize the opportunity for personal gain or conflict of interest;
· Minimize the opportunity for misuse (or perceptions of misuse) of taxpayers' dollars; and,
· Minimize the cost of travel.

A recent review and comparison to policies of similar organizations indicates that the policy requires updating for rates and reimbursable expenses.

Proposed changes to specific provisions are summarized below:

Item

Current Policy

Proposed Change

Per Diem

2 tiered rate

One rate for all Council, Board Members and Staff

$30 meal component (Breakfast $6, Lunch $9, Dinner $15)

$50 meal component (Breakfast $10, Lunch $15, Dinner $25)

$10/$20 incidental component (laundry, dry cleaning, telephone calls, taxi fares, parking, promotion and other usual business related expenses)

$10 incidental component with some items moved to eligible expenditures (e.g. Taxi fares for travel to and from hotel to business functions, parking in certain circumstances)

$50 US for travel in the U.S.
$65 US for travel outside North America

$60 US for travel in U.S.
$70 US for travel outside North America

Discretionary reduction to meal component for meals provided

Mandatory adjustment to meal component for meals provided

Eligible Expenditures

No specific provisions and a number of items were to be covered under the per diem (parking, taxi fares other than for ground transportation)

More specific listing of reimbursable expenditures not covered in other sections of travel policy. Includes business telephone calls, registration fees, seat assignment and ferry reservation fees. Parking expenses are covered under transportation section.

Ground Transportation

Only defined as transportation between home/hotel and airport

Expands definition to include transportation (taxi or public transit) between hotel and meeting or conference location.

Airport drop off fee of $5 each way and no provision for airport parking

Mileage between home/office and airport and airport parking.

Private Accommodation

Staying with friends and relatives - traveler could claim cost of purchasing gift or meal for host up to the per diem rate and receipts are required.

$30 per night allowance for staying in private accommodations - no receipts required.

Frequent Flyer Points

Travellers not allowed to accumulate frequent flyer points or air miles while traveling on City business.

Travellers allowed to accumulate air miles provided lowest economy airfare for direct flight to and from destination is chosen.

Travel Authorization

Travel outside North America by General Manager to be approved by City Manager.

Travel outside North America by General Manager to be approved by City Manager or Board.

Reimbursement Approval

Signed by travel approval authority

More specific listing of reimbursement approval authorities.

Vehicle Insurance

Not addressed.

Specific coverage guidelines for rental and employee owned vehicles.

The changes have been included in the revised Travel policy in Appendix A.

In arriving at the recommended changes to the per diem rates, reference was made to a survey of municipalities. A comparison was also made with rates for the Federal and Provincial governments. The per diem rates ranged from $41 to $80 with an average of $60.

FINANCIAL IMPLICATIONS

The financial impact of the increased in per diem rates and additional eligible expenses for reimbursement is roughly estimated to be $80,000 to $100,000. The additional cost will be absorbed by departmental operating budgets.

CONCLUSION

The revised travel policy will provide more equitable reimbursement of expenses for travellers on City business. Once approved by Council, the new policy will be effective commencing 2005.

LINK TO APPENDIX A

* * * * *


CITY OF VANCOUVER Administrative Report
	Date:	January 11, 2005
	Author:	Esther Lee
	Phone No.:	Phone 873-7080
	RTS No.:	04803
	CC File No.:	1504
	Meeting Date:	January 18, 2005

TO:	Vancouver City Council
FROM:	General Manager of Corporate Services/Director of Finance
SUBJECT:	Revised Travel Policy

Item	Current Policy	Proposed Change
Per Diem	2 tiered rate	One rate for all Council, Board Members and Staff
	$30 meal component (Breakfast $6, Lunch $9, Dinner $15)	$50 meal component (Breakfast $10, Lunch $15, Dinner $25)
	$10/$20 incidental component (laundry, dry cleaning, telephone calls, taxi fares, parking, promotion and other usual business related expenses)	$10 incidental component with some items moved to eligible expenditures (e.g. Taxi fares for travel to and from hotel to business functions, parking in certain circumstances)
	$50 US for travel in the U.S. $65 US for travel outside North America	$60 US for travel in U.S. $70 US for travel outside North America
	Discretionary reduction to meal component for meals provided	Mandatory adjustment to meal component for meals provided
Eligible Expenditures	No specific provisions and a number of items were to be covered under the per diem (parking, taxi fares other than for ground transportation)	More specific listing of reimbursable expenditures not covered in other sections of travel policy. Includes business telephone calls, registration fees, seat assignment and ferry reservation fees. Parking expenses are covered under transportation section.
Ground Transportation	Only defined as transportation between home/hotel and airport	Expands definition to include transportation (taxi or public transit) between hotel and meeting or conference location.
	Airport drop off fee of $5 each way and no provision for airport parking	Mileage between home/office and airport and airport parking.
Private Accommodation	Staying with friends and relatives - traveler could claim cost of purchasing gift or meal for host up to the per diem rate and receipts are required.	$30 per night allowance for staying in private accommodations - no receipts required.
Frequent Flyer Points	Travellers not allowed to accumulate frequent flyer points or air miles while traveling on City business.	Travellers allowed to accumulate air miles provided lowest economy airfare for direct flight to and from destination is chosen.
Travel Authorization	Travel outside North America by General Manager to be approved by City Manager.	Travel outside North America by General Manager to be approved by City Manager or Board.
Reimbursement Approval	Signed by travel approval authority	More specific listing of reimbursement approval authorities.
Vehicle Insurance	Not addressed.	Specific coverage guidelines for rental and employee owned vehicles.