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. * * * * *