ITEM O6a

OFFICE OF THE CITY MANAGER

(910) 341-7810 | FAX (910)341-5839
TDD (910)341-7873

1/9/2018

City Council
City Hall
Wilmington, North Carolina 28401

Dear Mayor and Councilmembers:

This resolution is requesting that Council adopt the Special Requests Travel Policy by Resolution along
with its companion ordinance requesting the appropriation of special travel funds totaling $20,000 from
committed fund balance.

On June 20, 2017, by resolution, Council authorized beginning with the year ending June 30, 2017,
excess funding at year end in 1) travel and 2) training and professional development, that is in excess of
both the division and functional area budgets, of City Council, City Manager Administration division,
Clerk and Attorney would be committed fund balance in the general fund for the purpose of unexpected
travel and/or training needs. Use of these funds would require Council action to appropriate the
funding for the intended purpose.

Since that resolution, the Governance Committee worked with staff to develop a special travel policy
and set criteria for its usage. The following summarizes the key points in the travel policy:

*Committed fund balance for special travel will be capped at $20,000

*Governance Committee will first vet and recommend the use of funds and bring a resolution to the
City Council for approval
*Funding will be used for unscheduled events beneficial to the City
*Funds can be used by the Mayor, members of City Council, City Manager, City Attorney and the City
Clerk only

In addition to adopting the special travel policy, a companion ordinance is requesting that $20,000 from
General Fund restricted fund balance (special travel) be appropriated for special travel needs during the
current fiscal year for any unscheduled events that may arise.

Adoption of the attached ordinance would approve the above recommendation and this action furthers
the focus areas of fostering a prosperous, thriving economy, promoting culture, arts and public spaces
and engaging in civic partnerships.

Passage of the attached Resolution and Ordinance is recommended.

Respectfully submitted,

Sterling B. Cheatham, O6a-1

City Manager
 City Council
Resolution City of Wilmington
North Carolina

Introduced By: Sterling B. Cheatham, City Manager Date: 1/9/2018

Resolution Adopting the Special Requests Travel Policy

LEGISLATIVE INTENT/PURPOSE:

On June 20, 2017, by resolution, Council authorized beginning with the year ending June 30,
2017, excess funding at year end in 1) travel and 2) training and professional development, that
is in excess of both the division and functional area budgets, of City Council, City Manager
Administration division, Clerk and Attorney would be committed fund balance in the general
fund for the purpose of unexpected travel and/or training needs. Use of these funds would
require Council action to appropriate the funding for the intended purpose.

Since that resolution, the Governance Committee worked with staff to develop a special travel
policy and set criteria for its usage. The following summarizes the key points in the travel
policy:
Committed fund balance for special travel will be capped at $20,000
During the annual budget process, funding from the committed fund balance will be
allocated to the Non-Departmental budget
Governance Committee will first vet and recommend the use of funds and bring a resolution
to the City Council for approval
Funding will be used for unscheduled events beneficial to the City
Funds can be used by the Mayor, members of City Council, City Manager, City Attorney
and the City Clerk only

Staff recommends adoption of this resolution.

THEREFORE, BE IT ORDAINED:

THAT, the Wilmington City Council, adopts the Special Travel Policy as presented in the
Appendix A: Special Travel Policy.

Adopted at a ________________ meeting

on ____________________ 2018
Bill Saffo, Mayor

ATTEST: APPROVED AS TO FORM:

Penelope Spicer-Sidbury, City Clerk City Attorney

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SPECIAL TRAVEL POLICY

Subject: Special travel, instances that arise above and beyond the normal annual
travel allocation, related to City business, training, events and functions for the current
City of Wilmington Mayor, City Council Members, City Manager, City Attorney and the
City Clerk hereafter referred to as “City Representatives”.

Purpose: To establish guidelines for authorization, payment and reimbursement for

fair and reasonable special travel expenses incurred by the City Representatives in
the performance of their official functions. As the stewards of public trust, every effort
will be made to minimize the cost to the public for appropriate travel and training
expenses and encourage appropriate participation.

Background: The City of Wilmington, North Carolina recognizes that City

Representatives are required to travel both within and outside of the State of North
Carolina for the purpose of representing the City. This policy is to discuss travel
expenditures outside the normal annual travel allocation guided by both the 1) City
Council Travel Policy and 2) Policy 402: Travel Policy. Expenses associated to
special travel may include travel related to unscheduled travel opportunities
beneficial to the City that were unknown at the time of budget preparation and are
found appropriate to attend through an approval process. The City Council
Governance Committee will authorize the use of funds which will be followed by a
resolution to the governing body for formal adoption.

In formulating this policy, it is recognized that the City of Wilmington citizens receive
tangible and intangible benefits through having representatives not only at formal
meetings, but also by providing the opportunity for those in municipal service to
participate in forums through which informal networking and information exchanges
may occur. The expense of such training, including the associated travel, is an
appropriate municipal expense.

Any of the City Representatives traveling on official City business are expected to
avoid excess costs, preventable delays or cancellations, luxury accommodations or
services unnecessary, unjustified, or solely for the convenience or personal
preference of the traveler in the performance of official City business. Travelers are
expected to adhere to these standards. The difference between allowable expenses
and additional expenses related to enhanced accommodations are the personal
responsibility of the traveler.

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TRAVEL POLICY GUIDELINES:

General Fund Restricted Special Travel Fund Balance

Expense Allocation

City of Wilmington Mayor, City Council Members, City Manager, City Attorney and
the City Clerk have a designated expense allocation per member for training and
travel as approved annually as part of the adoption by City Council of each Fiscal
Year’s Budget. These expense are generally for planned functions. If a travel
opportunity arises outside of these planned events, an annual budget appropriated
from committed fund balance will be budgeted in the Non-Departmental budget on
an annual basis for these uses. Any City Representative will have to request
permission from the City Council Governance Committee to use the special travel
funding. If approved by the committee, a resolution that provides justification for
said travel or training will be presented in the form of a resolution to the governing
body for adoption.

Said funding accumulates from 1) travel and 2) training and professional development
accounts that is in excess of both the division and functional area budgets, of City
Council, Clerk, Attorney and City Manager Administration divisions. It is held in
committed fund balance to be appropriated for unexpected travel and/or training
needs. The committed fund balance is capped annually at $20,000. During the
annual budget process, a separate special travel allocation in the General Fund’s Non-
Departmental budget shall be designated and approved as part of the annual budget
for these unexpected travel/training events. Any usage of this funding is not to exceed
the annual cap set at $20,000. The City Representative, pre-authorized on the basis
of their travel request approved by Council, will have their department’s travel and/or
training budgets adjusted according to the approved request.

Covered Expenses

Expenses that will be paid or reimbursed include conference or event registration,

associated supplies and materials, transportation, hotel accommodations, parking,
meals and incidentals. It will be the City Representative responsibility to justify the
business purpose of the trip via a resolution. If the business purpose cannot be
justified, no reimbursement will be given.

The following identifies the allowable Special Travel Related Expenses: (The leased
expensive method, in terms of costs to the City, shall be the preferred method of travel.)

a. Event/Conference Registration: The cost of registration or event

attendance will be paid or reimbursed by the City. Registration fees
require detailed support for the amount requested.

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b. Transportation to and from Event/Conference:

o City Vehicle: The traveler may travel by City vehicle; however,
reimbursement will only be made for any gasoline purchased with
personal funds during travel. All gasoline reimbursements require
a detailed receipt to support the purchase.
o Rental Vehicle: The City Representative may choose to travel
by rental vehicle through Enterprise requiring a purchase order;
however, reimbursement will only be made at the rental vehicle
rates, including gasoline for the rental vehicle. All gasoline
reimbursements require a detailed receipt to support the
purchase.
o Personal Vehicle: The traveler may travel by personal vehicle.
The current mileage reimbursement rate for each mile traveled will be
reimbursed after travel is completed. The currently mileage
reimbursement rate can be identified from the IRS website (IRS
Mileage Rates). Miles traveled must be supported by appropriate
documentation. Appropriate documentation includes:
 personal vehicle mileage out and mileage in
 Map Quest estimated trip miles (roundtrip) or
similar source.
 Any travel outside 50 miles of the Wilmington
City Limits will be allowable for reimbursement at
the current mileage reimbursement rates on a
per mile basis for City Council Members
traveling for official City business.
o Air Travel: The City Representative may choose to travel by air.
Only coach fares will be paid or reimbursed by the City. Fees
associated with cancellation of or changes to air travel will only be
paid or reimbursed by the City in cases of emergency or extreme
circumstances. City Representative will be responsible for
justifying such fees. Fees associated with the normal baggage
allowance for domestic travel will be paid or reimbursed by the
City. Any additional fees associated with excess baggage during
air travel will only be paid or reimbursed by the City in the cases
where an extended stay is required for official City business. Any
additional fees associated with overweight baggage during air
travel will not be paid or reimbursed by the City.
o Train Travel: The City Representative may choose to travel by
train. Only coach fares will be paid or reimbursed by the City.
Fees associated with cancellation of or changes to train travel will
only be paid or reimbursed by the City in cases of emergency or
extreme circumstances. Travelers will be responsible for justifying
such fees. Fees associated with the normal baggage allowance
for train travel will be paid or reimbursed by the City. Any
additional fees associated with excess baggage during train travel
will only be paid or reimbursed by the City in the cases where an
extended stay is required for official City business. Any additional
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fees associated with overweight baggage during train travel will not
be paid or reimbursed by the City.
o Bus Travel: The City Representative may choose to travel by
bus. Only coach fares will be paid or reimbursed by the City.
Fees associated with cancellation of or changes to bus travel
will only be paid or reimbursed by the City in cases of
emergency or extreme circumstances. The traveler will be
responsible for justifying such fees.
o Private Travel: Private means of travel for the City Representative
is not considered the preferred method of travel as it is not the
most economical. Therefore, all private means of travel will not be
reimbursed by the City. Private Travel includes: Privately-
charted Airplanes. Any exceptions to this practice must be
approved by the entire City Council.
o Baggage Fees: Fees associated with the normal baggage
allowance for air, train or bus travel will be paid or reimbursed by the
City. Any additional fees associated with excess baggage during
travel will only be paid or reimbursed by the City in the cases where
an extended stay is required for official City business. Any
additional fees associated with overweight baggage during travel
will not be paid or reimbursed by the City.

c. Hotel Accommodations / Lodging: The City Representative may select

lodging of their choice at the host event location or at another location.
Reimbursement will only be paid by the City at the single-room rate at
each lodging facility, unless it is unavailable. Lodging selections shall be
made considering the lowest acceptable cost, appropriate security, event
convenience, and role at the event. Lodging receipts must be itemized for
reimbursement purposes. Internet access fees will be reimbursed by the
City. Support must be identified for the internet access fee on the
accommodations bill.
d. Parking: The City Representative may be reimbursed for parking when
necessary to attend any event related to official City business. Parking
reimbursements require a detailed receipt to support the amount
requested.

e. Meals & Incidentals: The City Representative may be reimbursed for

meals and incidentals* at the current per diem rate at the event location.
Per Diem rates for varying locations can be identified at the U.S. Services
General Administration website. U.S. Services General Administration’s
Website Per Diem Rates (Per Diem Rates). (see Meals link below) Meal
and incidentals reimbursements at the per diem rates require no receipts
to be maintained and submitted. Meals provided for in the registration fee
of a conference or class are not eligible for additional reimbursement.

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In the event that the per diem allowance needs to be prorated to reflect
times that the City Representative is not in travel status, the per diem
allowance will be based on the per meal allowance set by GSA (see link
below). The City Representative may receive a meal and incidental
allowance for partial days of travel when the partial day is the day of
departure or the day of return. The following schedule guidelines will be
used to determine the per diem allowance for that day:

Breakfast – depart home prior to 6:00 a.m.

Lunch – depart home prior to 10:00 a.m. and return after 3:00 p.m.

Dinner – return home after 7:00 p.m. If stopping for dinner would
case the Traveler to return after 7:00 p.m., when they would have
otherwise returned before 7:00 p.m., then the dinner will not be
reimbursed.

*Incidentals include transportation to and from meals (taxi’s), tips, personal

phone calls,
and laundry.

NOTE: You must view the per diem rate for your primary destination to
determine which
M&IE rates apply. See per diem rate at the website link below.

U.S. General Services Administration Per Diem Rates

Expense Substantiation

The City Representative will be responsible for submitting their expense reports to the
appropriate individuals within the time period mentioned below. An expense report
with receipts (lodging, transportation, parking and event registration) and
documentation must be submitted for all related travel, training and event participation,
in no more than 10 days after the date of return. This policy, when applied, does not
constitute a source of income or other remuneration for the employee.

Guest Attendance

The City Representative from time to time may have a guest or spouse who
accompany them to certain functions. In the event that a spouse or unauthorized
guest attends any business related functions, the City Representatives will be
personally responsible for costs associated with spouse or unauthorized guest
attendance, travel and transportation, accommodations and meals while
accompanying the approved traveler.

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Length of Stay

The City Representative will be reimbursed for the length of stay relating to their
travel, training and event related expenses for the day prior to event, the day(s) of
events, and the day after the event.

Participation / Representation at Events

The City Representative shall participate in any travel, training and events as
determined necessary to represent the City of Wilmington, North Carolina. The
number of travelers participating in the event, shall be determined prior to the event,
with consideration of the costs associated with all traveler’s participation.

Review of the Special Travel Policy

A review of the City Special Travel Policy shall be performed as needed, and at least
annually by the Audit Committee. If updates are needed, then the policy will be
amended to include the necessary updates. Final approval of changes must be by the
entire City Council.

Special Travel Policy Procedures

*All travel and event arrangement shall be coordinated by the City Manager’s designee
(“Executive Assistant to Mayor and Council”).

Step 1: Council Approval through Resolution

To use the Special Travel funding, a resolution justifying the need and benefits to the
city shall be approved by City Council that has been vetted through the City Council
Governance Committee.

Step 2: Budget Amendment

The Budget and Research staff will adjust the required budgets. As a note, only those
departments within the Governance Function can have their budgets adjusted without
an Ordinance or special mention in the Adopted budget ordinance.

Step 3: Budget Verification/Travel Authorization Form (See Exhibit A)

The City Representative shall request that the travel coordinator complete a budget
verification (travel authorization) form for travel and events at least 10 days prior to
departure or to the event date. The budget verification (travel authorization) form,
which will include documentation about projected costs, will be used to validate that
sufficient funds are available within the individual department budget allocation and/or
combination with the special travel funds for training and travel. The ministerial
financial verification will be provided and signed off by the City Manager’s designee.

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Step 4: Arrangement Finalized

Once the travel authorization form has been approved, the travel coordinator will be
responsible for working with the City Representatives to finalize travel arrangements.
The travel coordinator cannot make any binding travel or event arrangements before
the travel authorization form is approved by both the City Manager and the Finance
Department.

Step 5: Expense Report (See Exhibit B)

The City Representatives shall submit all receipts and documentation to the travel
coordinator upon return and in no less than 10 days after the conclusion of the
training or event. The travel coordinator will work with the elected officials to ensure
the travel expense report is completed and submitted to the Finance Department.

Step 6: Reimbursement

The travel coordinator will be responsible for working with the City’s Finance
Department to ensure any travel, training and event expense reimbursements are
processed and provided to the City Representatives.

*The City Manager is responsible for enforcing this policy and shall report any
concerns over non-compliance to the Mayor and Chairman of the City Council
Audit Committee.

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