SUPPORTS ITEM NO. 3  
                                                      CS&B COMMITTEE AGENDA
                                                      APRIL 18, 1996       


                                  POLICY REPORT
                                 ADMINISTRATION


                                                       Date:  March 1, 1996


     TO:       Standing Committee on City Services and Budgets

     FROM:     Corporate Management Team

     SUBJECT:  Changes to Administrative Policies



     RECOMMENDATION

          A.   THAT gifts presented to City Council, Board Members or staff
               by visiting  dignitaries and/or  delegations,  which have  a
               value of over $50.00, be turned over to the appropriate City
               Official for safekeeping, or disposition by sale or auction,
               with  the  sale  proceeds  credited to  the  City's  general
               revenues.

          B.   THAT  gifts presented to  staff being paid  to represent the
               City  on  speaking engagements,  technical  presentations or
               other related activities, which have a value of over $50.00,
               be  turned  over  to   the  appropriate  City  Official  for
               safekeeping,  or disposition  by sale  or auction,  with the
               sale proceeds credited to the City's general revenues. Gifts
               in  the   form  of   cash  honorariums  or   other  monetary
               compensation  made in  similar circumstances,  regardless of
               amount, are to be deposited with the City.

          C.   THAT,  in   order  to  strengthen  the  City  administrative
               practices  around tendering for  supplies and  services, the
               general  conditions of  the  City's  tendering documents  be
               amended to  put existing  and potential suppliers  on notice
               that discounts/rebates  cannot be offered to  City employees
               unless those  same  discounts/rebates  are  offered  to  the
               public at  large, or those discounts/rebates  are offered to
               employees of other large employers (public and private) on a
               no-strings-attached basis to the employer.


          D.   THAT  Council approve  the  changes  to the  administra-tive
               policies discussed in this report and outlined in the report
               Appendices.  These policies deal with the following items:

                  -  Conflict of Interest - Staff;
                  -  Political Involvement - Staff;
                  -  Business Travel; and,
                  -  External Training - Staff.

          E.   THAT Council request the Park, Library and  Police Boards to
               adopt the above policies as well.


     CITY MANAGER'S COMMENTS

          The City  Manager RECOMMENDS approval of A, B, C, D and E, noting

          that this report  has been prepared  by the Corporate  Management
          Team.


     COUNCIL POLICY

     Amendments to established Council policies require Council approval.


     PURPOSE

     The  purpose of  this report is  to seek  Council approval  on certain
     administrative issues which  require either new  policy or changes  to
     existing policies.


     BACKGROUND

     The  City has  been without  an administrative  manual since  the late
     1960s.  At times, the lack of a centralized and consolidated source of
     information has made  it difficult  for both newly  elected and  newly
     appointed  officials  and staff  to  obtain  a  working  knowledge  of
     existing  corporate  policy   governing  many  routine  administrative
     matters.

     In order to address  this situation, the General Manager  of Corporate
     Services has agreed  to compile a manual  containing certain statutory
     obligations,  existing  Council   policies,  and  various   management
     policies and procedures.



     To  best explain existing policies and procedures, the manual is being
     compiled  in a  standard  format  and  presentation.   This  sometimes
     results in  a reformatting  of a  policy, which gives  it a  new look,
     although its content and application remain unchanged.  In cases where
     policies have been  updated to  reflect the  City's current  operating
     environment, the  updated versions will  be presented to  Council from
     time to time for approval.

     The changes to existing policies as outlined in the discussion section
     of this report fall into the latter category.


     DISCUSSION

     1.   New Policies

     Gifts From Visitors

     On  many occasions Council, Board Members and staff are presented with
     gifts from visiting delegations and dignitaries. These gifts can range
     in value  from nominal  to significant.   Our  proposal is that  gifts
     valued  at over  $50  must  be turned  over  to  the appropriate  City
     Official (usually the City Clerk). The Official will  keep a record of
     each gift  containing a description,  the estimated value,  the donor,
     the recipient and its final disposition.  These gifts may be displayed
     in individual offices, general offices, or in the public areas of City
     buildings.    Alternatively,  they may  be  disposed  of  by sale,  or
     auction, with the proceeds credited to the City's general revenues.

     The Official  will assist  in determining a  value for  each gift  for
     purposes  of executing  this policy  and will  consult with  Mayor and
     Council  or  the  appropriate  Board  before   taking  any  action  on
     disposition.

     Recommendation 'A' of the report deals with this policy situation.


     Gifts For Services Rendered

     The  following   policy  guideline  deals  with   gifts  from  outside
     agencies/groups given to City staff representing the City on  speaking
     engagements,  technical presentations  and  other related  activities.
     This  guideline only  includes activities  for which  the employee  is
     being paid by the City.

     The above discussion on gifts from visitors has equal applicability to
     gifts for  services  rendered.   An  additional  requirement  is  that
     acceptance   of  cash   honorariums  and   other  forms   of  monetary
     compensation,  regardless of value,  must be deposited  with the City.
     The exception would be  reimbursement for out-of-pocket costs incurred
     by  an  employee  for   travel,  living  and  accommodation  expenses,
     associated with attendance at an event.

     Recommendation 'B' of this report deals with this policy situation.


     Employee Discounts/Rebates

     City  employees are representatives of  City Council and  the way they
     conduct  themselves  will  determine   how  the  community  views  the
     corporate City of  Vancouver.  It  is therefore  critical that a  high
     standard of honesty,  integrity (one  of the  City's stated  corporate
     values)  and impartiality  be  seen to  underpin  the City's  business
     practices.

     Employee discounts/rebates  on purchases for  personal use is  a topic
     which surfaces from time to time.  Clearly, we know that our employees
     are offered discounts by a variety of commercial establishments,  some
     of which  are suppliers to  the City, and  those discounts are  likely
     accepted by many.

     In  order  to   guide  our   employees  on  the   types  of   supplier
     discounts/rebates  that  are considered  acceptable  under  the City's
     Conflict of Interest  policy, we  have proposed an  amendment to  that
     policy in  this report  which explains,  by example,  those situations
     where  a conflict would be deemed to exist.  Similarly, Recommendation
     'C' of this  report would put existing and potential  suppliers to the
     City on notice as to the City's policy on employee discounts/rebates.


     2.   Changes to Existing Policies

     Recommendation 'D' of this  report deals with the changes  to existing
     policy that are discussed below.

     Conflict of Interest - Staff (Policy Manual reference D.50.2)

     On March 10,  1987, Council adopted a policy dealing  with conflict of
     interest and confidentiality.   In  an effort to  assist employees  to
     clearly understand that  policy, there is  a need to  make some  minor
     wording  changes to parts of the policy, and these changes require the
     approval of Council.




     The wording changes cover the following areas of the policy:

        - the explanation  of when a conflict  is deemed to exist  has been
          more  concisely defined as a situation when either an employee is

          able to gain a special advantage due to employment with the City,
          or  conversely, where the City is disadvantaged as a result of an
          employee's other interest(s);

        - the  expected behaviour  of City  employees has  been defined  as
          conduct which accords with the spirit and letter of  the law, the
          Vancouver Charter, and Council's administrative policies; and

        - additional examples of a conflict of interest situation have been
          provided as follows:

             - employees  must not use or permit the use of City-owned
               equipment,   material,  staff  time,  or  property  for
               anything but City business; and

             - employees  of  the  City  may  not  take  advantage  of
               discounts/rebates on personal purchases  from suppliers
               having  an  existing  business  relation-ship  with the
               City,   unless   those   suppliers   offer   the   same
               discounts/rebates  to  the   general  public  or  those
               discounts/rebates are  offered  to employees  of  other
               large employers  (public and private)  on a no-strings-
               attached basis to the employer.

     The entire Conflict of Interest policy is set out in Appendix A and is
     submitted for  information.  The changes discussed above are submitted
     for  approval and have  been marked with  a vertical line  in the left
     margin of the text.


     Political Involvement - Staff (Policy Manual reference D.130.1)

     Section  38 of  the Vancouver  Charter was  amended during  the spring
     session of the Legislature in 1993.  The Charter now  allows employees
     to be nominated for City Council  and for the Park Board, provided the
     employee takes a leave of absence in accordance with the provisions of
     the Charter.


     The  Charter amendments  did  not deal  with  the situation  where  an
     employee  seeks to  hold office  on the  Vancouver  School Board.   On
     August  26, 1980,  Council  dealt with  this  issue and  approved  the
     following policy:

          That  City  employees be  permitted  to  participate in  the
          following political activities:

          (i)   active membership in a Vancouver civic party.
          (ii)  candidate for other GVRD Council.
          (iii) candidate for MLA.
          (iv)  candidate for other GVRD School Board.

          Further that  the matter of permitting City employees to run
          as candidates for the Vancouver School Board be deferred.


     The  aforementioned policy statement  has since been  interpreted in a
     manner which  prohibits Department Heads from  active participation in
     civic political parties.

     The School Board issue remains to be resolved.  Given that the Charter
     is  silent  on this  matter,  Council  does  not appear  to  have  the
     authority  to prohibit an employee from being nominated for a position
     on the  Vancouver School Board, or  to require the employee  to take a
     leave of absence in order  to pursue election to the Board.   In order
     to  address  this  long-standing  situation, the  policy  approved  by

     Council in 1980 has been revised to allow staff to seek nomination for
     the  Vancouver School  Board.   However, employees  seeking to  hold a
     position  on  the  Board, must  not  violate  the  City's conflict  of
     interest policy.

     The changes to the policy cover the following areas:

        - employees  may seek nomination and hold office on City Council or
          the Park Board; and

        - employees may  seek nomination and  hold office on  the Vancouver
          School Board.


     The entire Political Involvement - Staff policy is set out in Appendix
     B and is submitted  for information.  The changes discussed  above are
     submitted for  approval and have  been marked with a  vertical line in
     the left margin of the text.

     Business Travel (Policy Manual reference E.70)

     The City's current travel policy  was approved by Council on July  28,
     1992 and subsequently  modified on April  19, 1994 to  allow the  City
     Manager  to  delegate  his  authority  to  approve exceptions  to  the
     provisions of  the travel  policy to  the Director  of  Finance.   The
     Director of Finance has since made minor administrative changes to the
     travel  policy which  clarify  the intent  of  the policy  or  improve
     control over travel costs generally.

     The changes to the policy cover the following areas:

        - a new provision to the travel authorization process which permits
          a person who is authorized to approve travel to lower the maximum
          spending  levels set out in  the travel policy  on a case-by-case
          basis in order to accommodate available budget funds.  Reductions
          must be agreed to by the traveller prior to the travel;

        - clarification  of the activities which are  considered to be part
          of a  registration  fee.    Social  events,  banquets  and  other
          ancillary  activities are  not  to be  included  as part  of  the
          registration fee if they  are optional and involve an  extra cost
          over and above the  basic registration fee. Ancillary activities,
          if business related, should be identified as separate claim items
          on the travel expense form.  Otherwise, they should be considered
          as part of the per diem allowance;

        - clarification   of   allowable   expenses  when   travelling   by
          automobile.   In  addition  to the  costs  noted in  the  present
          policy, travellers may claim parking costs and toll fees;

        - clarification  of  excursion  fares.   Excursion  fares  are  not
          generally available for business  class travel.  Therefore, staff
          and Council/Board  members who  are permitted  to  travel in  the
          business  class category  are  exempted from  the excursion  fare
          requirement at their option;

        - clarification  of class of travel  for staff at  pay grade 34 and
          above.   This category includes the Inspector level and above for
          the Police Department;

        - flight   cancellation  insurance   has  been   eliminated   as  a
          requirement when  booking excursion fares.   Based on  the City's
          experience to date, it  is less expensive to self-insure  for the
          possibility of travellers  not being  able to  travel because  of
          sickness  than  to  pay  the  additional  premium  costs for  the
          insurance coverage;




        - clarification  of  the requirement  to  book  hotel reserva-tions
          through  the  City's designated  travel  agency.  The policy  now
          allows  certain  reservations  to  be  made   through  designated
          conference organizers to take advantage of group discounts;

        - clarification  of  the  reimburseable  expense   associated  with
          staying  with  friends  or  relatives instead  of  booking  hotel
          accommodation.   The policy allows  a traveller to  claim a daily
          reimbursement  for the expense of  purchasing a gift  or meal for
          the  host, up to the  full per diem  allowance for the traveller,
          for  the  duration  of  the  stay.    Appro-priate  receipts  are
          required;

        - a $5 airport  pick up and drop off charge  ($10 maximum per trip)
          may now be  claimed in lieu of  air-porter/taxi transportation or
          short-term airport/terminal parking charges;

        - clarification of the meal components for purposes of reducing the
          per diem allowance in certain circumstances. The components are:

                 i)  breakfast $ 6.00
                ii)  lunch       9.00
               iii)  dinner     15.00

          For example, if a traveller receives a meal which  is included as
          part of  the training/conference registration  fee, the traveller
          could reduce  the  per diem  allowance  by the  appropriate  meal
          component amount; and

        - clarification of the applicable bench mark fare  when combining a
          business   trip   with   personal   travel.     The   traveller's
          reimburseable  portion of  the fare  will be  based on  a direct,
          return flight  to/from the business destination  using the lowest
          economy excursion fare available for the travel dates.


     The  entire Business  Travel policy is  set out  in Appendix  C and is
     submitted for information.  The  changes discussed above are submitted
     for  approval and have  been marked with  a vertical line  in the left
     margin of the text.

     External Training - Staff (Policy Manual reference G.120.1)

     In 1980, City Council delegated the responsibility for  external staff
     training  to  Department Heads.    Council  still  required the  Human
     Resources  Department to  be involved  with external  training  in the
     following circumstances:

        - where a  department considered  it  appropriate for  the City  to
          contribute less than 100% of the course fees; and

        - where an employee had successfully completed  a credit course and
          was  entitled to reimbursement of  the second half  of the course
          fees.


     In  keeping with the present restructuring of City operations, and the
     delegation  of  decision  making   authority  and  responsibility   to
     appropriate staff  levels in  the organization, the  following changes
     are proposed to the present external training policy:

        - the department  head or designate  is to  decide the  appropriate
          external training needs for  department staff and will administer

          the reimbursement of course fees; and

        - departments are tomaintain records of all externalstaff training.

     The entire External  Training - Staff policy is set  out in Appendix D
     and is submitted  for information.   The changes  discussed above  are
     submitted for approval and  have been marked  with a vertical line  in
     the left margin of the text.


     CONCLUSION

     This report is the first  in a series of reports which  will deal with
     updating present City  policies to accord with  our changing corporate
     culture and working environment.   The recommendations of this  report
     not  only propose updates to present policies but present for approval
     two  new policies  dealing with  the acceptance  of gifts  by Council,
     Board  Members  and staff,  and  a  recommendation to  strengthen  the
     notification to our suppliers around employee discounts/rebates.

     A  copy of  this report  has been  forwarded to  all civic  unions and
     employee group representatives.



                                *   *   *   *   *