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2024-01-25 Work SessionKodiak Island Borough Assembly Work Session Assembly Chambers Thursday, January 25, 2024, 6:30 p.m. Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. This work session is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Page 1. CITIZENS' COMMENTS 1-907-486-3231 or Toll Free 1-855-492-9202 (Limited To Three Minutes Per Speaker) 2. AGENDA ITEMS a. Review the 2018-2023 Strategic Plan 3-38 Agenda Item Report - Pdf b. Consideration And Discussion To Change The Travel Policy 39- 107 Agenda Item Report - Pdf 3. PACKET REVIEW a. PUBLIC HEARING • State of Alaska Alcohol and Marijuana Control Office Liquor License Transfer of Ownership From The Liquor Cabinet, Inc To Back Bay LLC DBA Liquor Cabinet/Cost Savers #4044 OTHER ITEMS • Declaring A Seat Vacant On The Parks And Recreation Committee Of Mr. Travis Cooper • Authorization To Cancel The February 8, 2024, Work Session and February 15, 2024, Regular Meeting EXECUTIVE SESSION • Litigation Update Regarding Kodiak Area Native Association v. Kodiak Island Borough, Case No. 3 KO -21- 57C1 • Litigation Update And Discussion Regarding Claims Filed By Rebecca Nelson Against The Kodiak Island Borough And Bayside Fire Department Page 1 of 109 4. MANAGER'S COMMENTS a. Borough Manager's Report 108 20240125 Borough Manager's Report 5. CLERK'S COMMENTS a. Borough Clerk's Report 109 20240125 Borough Clerk's Report 6. ASSEMBLY MEMBERS' COMMENTS 7. MAYOR'S COMMENTS 8. EVENTS CALENDAR • February 9-13, NACo Conference, Washington, DC • February 14-16, Federal Lobbying, Washington, DC • February 20-22, AML Winter Legislative Conference, Juneau, Alaska • March 7-8, SWAMC Economic Summit and Membership Meeting, Anchorage, Alaska • April 5, Cook Inlet Regional Citizens Advisory Council Board Meeting, Kenai, Alaska • August 13-15, AML Summer Legislative Conference, Kodiak, Alaska This meeting is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Please subscribe to get meeting notifications when meeting packets are published. For public comments, please call (907) 486-3231 or (855) 492-9202. Page 2 of 109 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 25, 2024 4 ' x ASSEMBLY WORK SESSION SUBJECT: Review the 2018-2023 Strategic Plan ORIGINATOR: Aimee Williams, Borough Manager RECOMMENDATION: At the December 14, 2023, work session, the Assembly postponed this item to this work session. During the agenda setting of January 2, 2024, it was decided to approach the discussion by reviewing the 2018-2023 Strategic Plan. This review will help inform next steps in the process. DISCUSSION: ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Review the 2018-2023 Strategic Plan Page 3 of 109 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 AGENDA ITEM #2.a. Introduced by: Borough Assembly Requested by: Borough Assembly Drafted by: Borough Assembly Introduced on: 03/22/2018 Adopted on: 03/22/2018 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2018-30 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY ADOPTING THE KODIAK ISLAND BOROUGH STRATEGIC PLAN FOR THE YEARS 2018-2023 WHEREAS, a strategic plan consisting of priorities of the Borough is needed to guide the budget process and ensure that the Assembly clearly communicates its priorities to Borough staff and the public; and WHEREAS, the Kodiak Island Borough Assembly conducted a strategic planning meeting on Saturday, January 21, 2018 to determine the priorities for the Borough; and WHEREAS, the Assembly identified five strategic directions for its strategic plan and desires to adopt these by resolution. NOW, THEREFORE BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH ASSEMBLY THAT the Kodiak Island Borough Strategic Plan for the years 2018-2023 is hereby adopted. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TWENTY SECOND DAY OF MARCH, 2018. KODIAK ISLAND BOROUGH Daniel A. Rohrer, Mayor ATTEST: liv, —0 Q416'�- Nova M. Javier, MMC, Ierk UNANIMOUS VOTES: Ayes: Kavanaugh, Schroeder, Skinner, Smiley, Symmons, Van Daele, Crow Kodiak Island Borough, Alaska Resolution No. FY2018-30 Page 1 of 4 Page 4 of 109 Review the 2018-2023 Strategic Plan 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 AGENDA ITEM #2.a. STRATEGIC PLAN (FISCAL YEARS 2018-2023) PURPOSE The Kodiak Island Borough government exists to provide effective and efficient government services within our powers and duties that will improve the quality of life in our community. ENVISIONED FUTURE 2030 Citizens have entrusted the Kodiak Island Borough government with powers that promote a vibrant, diverse, and healthy economy and community centered on Kodiak's unique assets like our natural resources, people, and history. This includes a focus on a reasonable cost of living and a great quality of life where diverse cultures and viewpoints come together; and an engaged community of citizens who are working, living, and thriving together. STRATEGIC DIRECTION ENCOURAGE LAND AND NATURAL RESOURCES MANAGEMENT FOR MAXIMUM BENEFIT OF BOROUGH CITIZENS. a. Review Comprehensive Plan to ensure it is current and accurate, then develop land plan consistent with the Comprehensive Plan to maximize potential for our community's economic growth and quality of life. b. Create a long range natural resource development plan. 2. OPTIMIZE THE EFFECTIVE USE OF COMMUNITY RESOURCES AND ASSETS THROUGH PARTNERSHIPS FOR THE BENEFIT OF BOROUGH CITIZENS. a. Explore ways to collaborate with local governments to capitalize on community partnerships through fostering positive relationships with cities, school district, service areas, tribes and rural communities within the borough. b. Work in partnership with State and Federal Agencies. c. Promote a culture of public trust of elected officials, appointed officials, and staff through involvement of all citizens, and strive to ensure all citizens feel comfortable, empowered and desirous of participating in local government. 3. FOSTER RESPONSIBLE ECONOMIC GROWTH THROUGHOUT THE BOROUGH. a. Promote economic development policies that enhance a diverse economy and business development. b. Advocate for a healthy and vibrant fisheries industry. c. Advocate for enhancement of local resources such as Kodiak based seafood and marine science and education opportunities, tourism, agriculture, energy, Pacific Space Port, mineral extraction, etc. d. Encourage options to meet the local need for housing affordable for citizens with financial capacities. Kodiak Island Borough, Alaska Resolution No. FY2018-30 Page 2 of 4 Page 5 of 109 Review the 2018-2023 Strategic Plan 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 AGENDA ITEM #2.a. 4. PROMOTE FISCAL POLICIES THAT ENSURE STABILITY AND RESPONSIBLE GOVERNMENT a. The Borough Assembly will be prudent in deliberations on revenue required to fund Borough operations. b. Balance expenditures to revenues on an annual basis to ensure the health of our community. c. Foster public understanding of borough finances and operations. d. Periodically review the long-term solid waste plan and revise as necessary. 5. PROVIDE EFFICIENT, EFFECTIVE, AND RESPONSIVE PROCESSES REFLECTIVE OF A HIGH PERFORMING GOVERNMENT a. Evaluate opportunities for restructuring local government (e.g., consolidation or other options available under Alaska law). b. Understand the service area boards activities and borough's responsibility in regards to service area boards. c. Seek ways to integrate committees in borough and city that maximize participation and capacity. d. Provide clear and concise direction to committees on an annual basis. 2018 Priorities (Not in Priority Order) 1. Focus on staffing structure and ensure a smooth transition for new key leaders. 2. Establish expectations and accountability for each committee, and ensure codes and roles are clear and understood by members. 3. Explore ways to collaborate with local governments to capitalize on community partnerships through fostering positive relationships with cities, school district, service areas, tribes and rural communities within the borough, seek opportunities for restructuring or consolidation with expectations to have a report at year's end on opportunities for restructuring or consolidation and progress made on joint committees, shared staffing. 4. Identify potential policies for adoption to enhance economic development. 5. Develop a catalog of all available land to begin the process of developing a comprehensive land plan. 6. Look into cost of securing specialist(s) to forecast and recommend the most viable economic strategies. Suggested Metrics For Measuring Outcomes of Priorities 1. (Including measures such as) • Every quarter present information to the assembly on jobs filled -open. • Have all new staff leaders address the assembly • At end of year complete final report describing the transitions with candid feedback, in exec session, to the assembly if all positions were successfully filled with the right people. 2. (Including measures such as) • Develop clear expectations for each committee • Have clear "job descriptions" for all members of each committee. Kodiak Island Borough, Alaska Resolution No. FY2018-30 Page 3 of 4 Page 6 of 109 Review the 2018-2023 Strategic Plan 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 AGENDA ITEM #2.a. • Establish priorities, from the assembly, for issues to review and expectations for every committee; the committee could adopt additional priorities as they see needed. • Work to integrate at least (#?) of committees between borough and city. 3. (Including measures such as) • Seeks to establish an ad hoc joint committee of assembly and council members to meet regularly to ensure maximum coordination occurs with current structures. • Meet with other entities such as tribes and/or KANA to better coordinate with tribal citizen governments • Meet with Coast Guard officials on ways to better coordinate. • Determine if it is time to seek an independent review of data and options for increased re -organization and/or consolidation. 4. (Including measures such as) • Ask staff or assembly members to recommend specific policies to enhance economic advantages. • Identify (#?) policies to introduce for assembly vote. 5. (Including measures such as:) • Have staff continue efforts to develop the land catalog. • At specific time complete and review the catalog. • Assembly spends time to better understand the Comprehensive Plan and what benefit there would be in a land plan. • Discuss need and timing to implement a more comprehensive land plan. 6. (Including measures such as:) • Establish a scope of work for an economic analysis that would benefit the assembly's understanding of viable options and trends. • Develop an RFP to understand the cost of project desired. Borough Assets Identified by the Assembly Top Three • People • Natural Resources • History/Culture Supportive Assets • Energy Infrastructure • Fishing Industry with Diverse Species • Coast Guard • Overall Infrastructure • Diverse Economy • Schools • Location/Environment/Place • Weather • "Make it Work" Attitude • Self Sufficient AND Work Well Together Kodiak Island Borough, Alaska Resolution No. FY2018-30 Page 4 of 4 Page 7 of 109 Review the 2018-2023 Strategic Plan 0 (ODD AGENDA ITEM #2.a. L�,e F U tUr� _ 2022-2027 , s tr at eic g Plan 0 SSW CONSULTING Page 8 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. A Message From the Steering Commitee In Sitka, we value community and quality of life. We are known for our natural beauty, rich history, and cultural heritage. We have a small-town atmosphere where neighbors know each other and are willing to lend a helping hand. Over the past several decades, Sitka has grown from a quiet logging and fishing town to a bustling tourism destination and a thriving maritime industry. This growth has given way to additional developments, such as a vibrant downtown showcasing locally owned businesses, growing regional community healthcare system, and expanded government services to support the community. With growth comes change, but also the opportunity to chart our own course for the future. Our community has weathered a lot over the past few years — a global pandemic, record -high inflation, and political polarization, to name a few. Additionally, we are facing complex challenges, such as increased demand for housing options, record levels of tourism, food security, rising costs and demands for infrastructure maintenance, and changing needs to support today's workforce. While we have a lot of priorities in our community, the reality is we, as the local government entity, cannot focus on everything at the same time. As we look ahead to the future of our community, we have the opportunity to collectively decide the direction in which we want to go. Equally important, we must be strategic about our resources and the decisions we make to ensure we arrive at our desired destination. Review the 2018-2023 Strategic Plan Our core purpose is to provide public services that support a livable community for all. For this reason, we pursued the development of a strategic plan in early 2022. This plan is a five-year road map to guide our organization in achieving our shared vision. Rooted in a substantial outreach effort to gather input from the Assembly, community members, local partner organizations, and the CBS organization, the strategic plan is focused on goals and tactical actions for the CBS to achieve the community's highest priorities over the next five years. The planning process also accounts for the significant input gathered during the recent Comprehensive Plan update process as well as an analysis of current community conditions and trends. Over the past year, we have engaged hundreds of community members and collected thousands of comments to make Sitka a sustainable and livable community for all. We are grateful to everyone who shared their ideas through the community survey, interviews, community group conversations, and focus groups. Thank you for your investment in the future of Sitka! We will use this plan to chart the course for the CBS organization and seek out the partnerships that will bring our goals to life. We will regularly communicate our progress and keep this plan updated to maintain its responsiveness and relevance to our community. Our team looks forward to growing the future together. 2 Page 9 of 109 99 Alone we can do so little; together we can do so much. - Helen Keller form Acknowledgments ASSEMBLY Steven Eisenbeisz, Mayor Kevin Knox, Deputy Mayor Kevin Mosher, Vice Deputy Mayor Thor Christianson Crystal Duncan Rebecca Himschoot David Miller CONSULTING TEAM Sara Wilson, Owner/Principal Ashley Sonoff, Associate n SSW CONSULTING STEERING COMMITTEE Steven Eisenbeisz, Mayor Rebecca Himschoot, Assembly Member John Leach, Municipal Administrator Melissa Henshaw, Public & Government Relations Director Amy Ainslie, Planning Director Robert Baty, Police Chief Scott Elder, Electric Utility Director Melissa Haley, Finance Director Michael Harmon, Public Works Director Jess leremia, Library Director Valerie Ruff, Human Resources Director Ron Vinson, Asset Manager For I -a Table of Contents 06 Introduction (07 Goals + Process 11 Mission, Vision, Values +Goals 14 Action Plan 20 Plan Implementation 22 Appendix 74� In the face of uncertainties, planning defines the particular place you want to be and how you intend to get there. - Peter Drucker 66 A6 Introduction WE ARE GROWING THE FUTURE TOGETHER! Sitka is known for its small-town friendly atmosphere, vibrant local economy, and stunning natural beauty. We want to preserve what residents love about Sitka while ensuring our community is a livable place for all Sitkans for years to come. The CBS Strategic Plan is our five-year road map to guide the organization as we pursue the vision and goals reflective of the current community and organizational needs. WHAT IS A STRATEGIC PLAN? The Strategic Plan is an opportunity for the community to reflect on the current state of our community and organization, determine what we want Sitka to be in the future, and ultimately define how the organization will drive this vision forward in alignment with our mission and values. A strategic plan acts as a compass. It helps our organization focus on a set of shared goals and guide it toward achieving them. The strategic plan provides defined goals and actions, rooted in community -identified priorities and informed by an understanding of current trends, along with an action plan and key performance indicators to measure progress over time. Furthermore, it fosters a culture of strategic management for the organization by serving as a resource to guide both long-term planning as well as daily decisions concerning the organization's delivery of services and the community's future. The Strategic Plan will guide the work of the CBS organization over the next five years through the development of a mission, vision, values, goals, and actions that will help improve the services we provide to our community. The plan includes an implementation structure to promote accountability and transparency as we pursue our goals and actions. Additionally, the implementation structure supports regular updates to keep the plan relevant and responsive to community and organizational needs. The process builds on the input collected from the comprehensive planning effort in 2018 and includes a significant outreach effort in 2022 to gather input from the community, its partners, and the organization. WHY NOW? The City and Borough of Sitka (CBS) organization has weathered many changes over the last few years. This period of transition is a great opportunity to refocus with the development of a mission, vision, goals, and how to strategically align the resources to best serve our community over the next five years. Our community is facing complex challenges, such as housing needs, growth in tourism, cost of living affordability, infrastructure, food security, and supporting our local economy. To address these issues, it will require focused efforts, collaboration with community and regional partners, and strategically aligning our community resources to create positive change. We highly value our community and want CBS services to be responsive to the needs of all Sitkans. The strategic planning effort has been an opportunity to come together to decide the future direction of our community. While we can't focus on every issue simultaneously, this is a way to understand the community's highest priorities for the next five years and guide the organization in addressing those needs. AGENDA ITEM #2.a. Strategic Plan Goals + Process We set out to achieve the following goals during this process: Build a plan to guide Sitka over the next five years Develop a plan informed by the public engagement gathered through the Comprehensive Plan update and through additional targeted outreach Identify the vision and values, critical strategic initiatives, high-level goals, and a reporting framework to guide the City's work WHAT IS THE DIFFERENCE BETWEEN A COMPREHENSIVE PLAN AND A STRATEGIC PLAN? Sitka's Comprehensive Plan is a long-term (10+ years) guide for policy decisions related to community land use and development. The City and Borough of Sitka's Comprehensive Plan has been in existence since 1976 with regular reviews and updates, the most recent being May 2018. In contrast, the Strategic Plan takes a shorter -term look (5 years) and is focused on the delivery of services to the Sitka community. The strategic plan will help us focus on our goals and guide us toward achieving them with tactical action items. Strategic Shorter -term (5 years) Strategic management to guide delivery of services Focused on setting goals for organization and tactical actions to achieve them STRATEGIC PLAN PROCESS F 40 term (usually 10+ years) Guides land land -use policy and development Focused on land -use, development, I transportation, and infrastructure Community and organizational engagement is the foundation of the strategic planning process. Building on the results of the large-scale community engagement conducted during the Comprehensive Plan update process in 2015-2018, the strategic plan community engagement focused on facilitating inclusive opportunities to ensure the vision and values are reflective of all people in Sitka. CBS staff was also engaged in the process to provide input and direction on operational improvements for the organization. VA Page 14 of 109 Review the 2018-2023 Strategic Plan Shorter -term (5 years) Strategic management to guide delivery of services Focused on setting goals for organization and tactical actions to achieve them STRATEGIC PLAN PROCESS F 40 term (usually 10+ years) Guides land land -use policy and development Focused on land -use, development, I transportation, and infrastructure Community and organizational engagement is the foundation of the strategic planning process. Building on the results of the large-scale community engagement conducted during the Comprehensive Plan update process in 2015-2018, the strategic plan community engagement focused on facilitating inclusive opportunities to ensure the vision and values are reflective of all people in Sitka. CBS staff was also engaged in the process to provide input and direction on operational improvements for the organization. VA Page 14 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. GROWING THE FUTURE TOGETHER WAS ORGANIZED INTO THREE PHASES PHASE 1: GATHERING COMMUNITY IDEAS After kicking off the project in February 2022, the Steering Committee, comprised of 12 representatives from CBS Departments and the Assembly, developed a Communications and Engagement Plan to assist with gathering ideas. The Steering Committee committed to an inclusive process that sought to include the input of all voices, whether through previous engagement in the Comprehensive Plan update process or through new outreach opportunities for the strategic plan. Additionally, the Steering Committee prioritized process integrity throughout the outreach efforts to build relationships and create trust that enables reliable government activity in a transparent environment. The Steering Committee guided the process and designed multiple opportunities and tools to engage the community and organization in the Strategic Plan development, including: • Strategic planning workshop • Community survey • Presentations and outreach to Boards, Commissions, + Community Groups • Community leader interviews • CBS staff survey • Focus groups • Utility bill insert Fact sheet • Social media, media release, and radio • Project website Communication + Engagement Goals The following goals and values guided the team's engagement efforts: Engage targeted stakeholders to develop a five-year strategic plan that will guide CBS Build on the results of the broad community engagement conducted for the comprehensive planning process Create project awareness across the community and organization and facilitate inclusive outreach opportunities to ensure the vision and values are reflective of Sitka 8 Page 15 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Communication + Engagement Values INCLUSIVE: this will be an inclusive process that seeks to include the input of all voices - whether through their previous engagement in the comprehensive plan process or through new outreach opportunities for the strategic plan. The process will seek to be inclusive and accessible to foster trust and build relationships to help achieve the resulting goals and actions. INTEGRITY: We will ensure process integrity through our outreach efforts. Process integrity is the ability to build relationships and create trust that enable reliable government activity in a transparent environment. STRATEGIC PLAN Engagement - • TASK /PROCESS MAR APR MAY UN UL AUG IEP Strategic Planning Workshop sit kag rowing thef u turetog eth a r. org NGAGEMENT BY THE #'S 9 Page 16 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. PHASE 2: DEVELOPING THE STRATEGIC PLAN The project team carefully analyzed the thousands of community comments gathered through the outreach activities to identify common ideas, comments, and trends. Following the analysis, the project team organized the information into six outreach themes representing community priorities as shown below. Strategic Planning Outreach Themes Access to chi ldcare Afforda bi liDebt management and master plan Affordable Quality of Fiscalneeds Utility costustainabili Life ision Themes: Discipline to create/fostersustainability Impacts of tourism Food Security Collaboration DiversitIncrease engagement and Support existing industries:y+ Inclusion Fiscal Sustainabilityparticipation Tell CBS's story Economic Energy sustainability mmunicati Build relationships with a focus tourismInfrastructure Sustainable economic growthevelopme Economic development Engaggroups City's role to supporteme ommunications + engagemen Address barriers to participation economic growthProactive vs. reactive CBS as a convener Business support services Safety and training Proactive management Right size to level of service and Workforce development resources to support Succession planning Find revenue to address existing frastructur rganization evelneeds vs. adding new policies and procedures opmeIntegration and standardization of Address deferred maintenance Focus on asset management PHASE 3: ADOPTING THE STRATEGIC PLAN The project team presented the draft strategic plan to the Sitka Assembly on September 1st to gather feedback. The project team incorporated the Assembly's comments into the revised draft strategic plan and invited community members to review the revised draft online and provide comments. The project team incorporated the community comments to develop a final version of the strategic plan, which was presented to the Assembly for adoption on September 27th. 10 Page 17 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Mission, Vision Values + Goals WHY WE EXIST Provide public services for Sitka that support a livable community for all. OUR DESIRED FUTURE STATE CBS is an organization that values everyone and proactively works together to serve the community. We are fiscally sustainable, supporting a diverse economy and well-managed infrastructure. We are innovative in seeking ways to protect and preserve Sitka's natural environment. We are a respected employer where people enjoy their work and provide valued public services. 11 Page 18 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. WHAT GUIDES US PEOPLE INNOVATION INTEGRITY People are our greatest Innovation supports a Integrity guides our asset. We value all proactive approach to service delivery, people including our fulfilling our mission. We processes, and community, employees, are forward thinking and communication. We and visitors. We continuously working to are accountable to the appreciate the diversity improve our processes Sitka community, and of Sitka, and we respect and our people to we provide services in a and celebrate all people. provide efficient and transparent, honest, and We foster a safe and effective services to our ethical manner. welcoming environment community. for all. SQA SUSTAINABLE SERVICE Sustainability ensures we Serving the community plan and deliver services is our job. We with the future in mind. provide service with We are good stewards compassion, kindness, of taxpayer resources and excellence. We care as well as our natural about our community and environment. organization, and this is reflected in our service levels. 12 Page 19 of 109 Review the 2018-2023 Strategic Plan Goals WHAT ARE OUR DESIRED OUTCOMES FOR OUR COMMUNITY AND ORGANIZATION? 1 Quality of Life Preserve the quality of life and affordability for all Sitkans Communication Improve communications and strengthen relationships within the community and organization 000 Sustainability Align resources and financial and economic policies with CBS'goals for a sustainable community Infrastructure Plan invest in infrastructure for future r*i and sustainable generations ## Service CBS is recognized as being a great place to work and excellent service provider to the community T 1� Action Plan The Action Plan contains the policies, programs, and projects CBS will implement to fulfill the organization's mission and achieve the five-year vision and supporting goals. WHAT IS AN ACTION? The actions represent a policy, program, or project. The actions are organized by goal areas and support the overall organization mission and vision. The actions were informed directly by the ideas and priorities shared by community members and CBS employees during the strategic plan outrn—k mr—nec The scope and timeline of Some actions are signifi and will require multiple while others are smaller in achieved in a shorter time of size and scope, all acti role in improving the deliver community. AGENDA ITEM #2.a. WHO IS RESPONSIBLE FOR IMPLEMENTING THESE ACTIONS? The actions of the strategic plan are internally focused with the CBS organization responsible for implementing these actions. Each action will be assigned to a project lead and team of CBS employees. While CBS plays a critical role in achieving these actions, the organization, and ultimately the community, will be most successful through working together with community partners to implement the plan. Page 21 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Goal 1: Preserve the quality of life for all Sitkans 1.1 Convene community partners to develop a community -wide strategy to improve access to childcare 1.2 Develop a plan to improve housing options for all in Sitka Identify opportunities to relieve the burden of utility costs 1.4 Review the impacts and benefits of tourism, and developi, <� policies that prioritize the quality Z of life for all Sitkans��`_ 1.5 Convene community partners to develop an action plan that will address the challenges of food security -- 15 Page 22 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Goal 2: Improve communications and strengthen relationships within the community and organization 2.1 Develop a communication and engagement plan to increase engagement and participation through storytelling and enhancing Sitka's communication tools and networks Identify opportunities to foster relationships with underrepresented groups/populations in the community and implement findings to improve service delivery to these groups ?.3 Annually convene non -profits, CBS boards and commissions, and other community groups for a summit to discuss community challenges, updates, and opportunities for collaboration 16 Page 23 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Goal 3: Align resources and financial and economic policies for a sustainable community 3.1 Develop a fiscal policy that includes guidelines for areas of fiscal operations such as debt management, infrastructure replacement, metrics for fiscal health of funds, reserves, and other a rea s. 3.2 Prepare financial forecasts and life cycle models for all assets to bring resources in alignment with the City's top priority needs 3.3 Convene economic partners to explore the addition of business support services and employment training programs Identify and implement policies that will balance the economic benefits of tourism with the impacts on Sitkan's quality of life 17 Page 24 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Goal 4: Plan and invest in sustainable infrastructure for future generations 4.1 Identify and pursue funding to address existing capital needs and deferred maintenance ,I -t./- Develop asset management plans for future capital investments 4.3 Identify the levels of service for CBS's infrastructure and identify the resources needed to support these levels 3 4.4 Collaborate with public land management agencies w► and stakeholders to maintain and develop sustainable active transportation infrastructure, ■ including parks, fields, cabins, trails, and water access 18 Page 25 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Goal 5: CBS is recognized as being a great place to work and ex- cellent service provider to the community 5.1 Develop a workforce development plan that outlines clear policies for staff training and professional development Prepare a succession plan that addresses development of the current workforce and future workforce recruitment and retention strategies 5.3 Improve customer service levels and evaluate process improvements for service delivery Identify and develop necessary standard policies and procedures to promote organization - wide stability and service -level consistency Develop an internal communication and engagement plan and policies to improve the flow of information in the organization and increase employee engagement 19 Page 26 of 109 Review the 2018-2023 Strategic Plan STRATEGIC PLAN NEXT STEPS Following the Assembly's adoption of the strategic plan, CBS staff will use input and direction from the Assembly to prioritize the actions for implementation based on staff capacity and available resources. CBS staff will identify leads for each action. These leads will be responsible for the following: Overseeing the implementation of the action Developing a project charter (will identify the project team, stakeholders, timeline, key performance indicators, etc.) Identifying resources for implementation Engaging and updating the Assembly,Boards/Commissions, Organization, and the Community as needed Reporting progress, challenges, and opportunities to consider during implementation Recommending updates to the action if needed Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. rI Once the action leads have been assigned and the work has been prioritized, the actions prioritized for implementation will be considered in the budget development process. This will help in identifying resources for the action implementation if needed. At the end of 2023, CBS staff will coordinate an annual progress report for the strategic plan. The progress report will document progress, challenges, opportunities, and potential updates to the actions as needed. This report will serve as a communication tool back to the Assembly and the community to maintain accountability in implementing the vision and goals. 411 Page 27 of 109 AGENDA ITEM #2.a. FOSTERING A CULTURE OF STRATEGIC MANAGEMENT While this is the first iteration of this strategic plan, it is intended to foster a culture of strategic management and guide the organization in developing a more efficient, effective, and transparent system of providing public services. The process below describes the recommended system for implementing the plan and making regular annual updates to it to ensure it remains relevant in meeting current community and organizational needs. Regular engagement from the community, the Assembly, Boards/Commissions, and the organization are essential to fostering a system that is responsive and accountable. The graphic below illustrates what the annual process will look like going forward to maintain alignment between the strategic plan, the budget, and the departments' work plans. It also highlights where the engagement will take place, so the community, elected officials, and staff understand when and how to participate and get involved in this process. It is recommended the strategic plan undergo a complete update every five years to conduct more comprehensive engagement, review the mission, vision, and values, and examine the broader community context. These major updates will ensure the five-year vision continues to serve as a North Star in guiding the community and organization. These community engagement efforts also help to foster strong relationships with Sitka's community and its partners and build support for implementing the goals. Strategic Plan Progress Implementation • Road Map Check -in Ongoing October/ • This road map shows how the Assembly, community, November Annual Report + Celebration and organization can get involved in identifying December goals for CBS. The process repeats each year with the destination being continuous community and • organizational improvement. Assign Assembly Priorities, Community Strategic Project Leads, Department et Survey/Town Planning KPIs, Budget Work Plans Hall Workshop Timelines Adoption December January/February December June June 44 • • • • ache Future l Boards + Strategic Plan Budget Commissions Update + Development o�� �° Workshop Adoption February- January February April Key 0— Sitka, Alaska Community Assembly/ Staff/ Engagement Policy Administration • • • 21 Page 28 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. The appendix provides more detailed engagement results gathered through the strategic planning process. These details provide additional context for the vision, goals, and actions in the strategic plan. COMMUNITY SURVEY Building off the community engagement data gathered as part of the Comprehensive Plan update process, the community survey aimed to capture what community members enjoy most about Sitka, how Sitka can be a better place for residents, what areas CBS should prioritize in the next five years, and their communication preferences for receiving information from CBS. The project team promoted the community survey using both traditional and digital methods, including an insert in the utility bill mailings, press release, promotion on local radio stations, CBS website, and social media channels. The community survey resulted in the most significant community response (689 respondents) of all outreach activities. To support our goal of inclusivity and include perspectives from all groups in our community, the survey included an optional question to collect respondents'demographic information. The following chart displays the demographic information provided by respondents who chose to answer the optional questions. The project team carefully reviewed thousands of comments to identify common themes and trends that would lay the groundwork for the strategic plan goal areas. `Source: American Community Survey 5 -Year Estimates Data Profiles, U.S. Census Bureau, 2019 *"Sum of responses is greater than 635 as some respondents made more than one selection. 22 -includes ACS categories "Some other race" and "Two or more races" Page 29 of 109 Review the 2018-2023 Strategic Plan Number of Respondents Percentage of Respondents Sitka Demographics" Total Population 635 7.7% 8,257 Gender Male 193 30.4% 51.4% Female 363 57.2% 48.6% Prefer not to say 4 0.6% Other 26 4.1% Did not respond 49 7.7% Age 18 and under 12 1.9% 23.6% 18-24 55 8.7% 5.3% 25-34 117 18.4% 14.3% 35-44 114 18.0% 14.5% 45-54 90 14.2% 12.7% 55-64 98 15.4% 14.5% 65+ 99 15.6% 15.1% Did not respond 50 7.9% face/Ethnicity" White 445 70.1% 61.2% Hispanic, Latino, or Spanish origin 29 4.6% 5.9% Black or Afr can -Amer c 12 1.9% 0.4% Asian 22 3.5% 6.8% American Indian or Alaskan Native 1 77 12.1% 14.8% Native Hawaiian or Other Pacific Islander 16 2.5% 0.2% Middle Eastern or North African 2 0.3% Other(pl ease 37 5.8% 16.7% Did not respond 62 9.8% `Source: American Community Survey 5 -Year Estimates Data Profiles, U.S. Census Bureau, 2019 *"Sum of responses is greater than 635 as some respondents made more than one selection. 22 -includes ACS categories "Some other race" and "Two or more races" Page 29 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Share what you like most about Sitka that we should we preserve into the future? wilderness arts culture downtown traii,sfriend ly small beauty safe public air great feel community water aCC2SS hiking owned sitka people activities town schools safety environment recreation fishing natural parks nature atmosphere businesses beautiful trail clean ocean sense opportunities outdoor local support events What is the most important thing Sitka should focus on in the next five years? haulneeds businesses childcare affo rd a b le Living energy live road housing land COSI need care families development industry making town tourism food economic City boat focus S itka locals education affordability residents keep community people use economy local climate keeping children infrastructure fishing better The Strategic Plan Steering Committee and Assembly completed stakeholder exercises to help the project team identify the groups and people for focused engagement through interviews and presentations. The project team met with 11 groups, including CBS volunteer boards/commissions as well as community organizations. The presentations included an overview of the strategic planning process and a discussion of what the group loves about Sitka, upcoming challenges, and how CBS should address those challenges. The community leader interviews included representatives from various community organizations throughout Sitka and gathered information related to what they love about Sitka, significant changes and/or trends, opportunities on the horizon, the community's most pressing challenges, priorities for the strategic plan, and recommendations for communications and engagement. The stakeholder exercises identified the Sitka Tribe of Alaska and Filipino community for targeted engagement in the for the strategic plan community outreach and the project team prioritized reaching these groups. While representatives from these groups participated in the outreach activities, there is an opportunity for more dialogue. Ongoing engagement will be important in strengthening relationships with these groups for more effective outreach in the future. 23 Page 30 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. FOCUS GROUPS The project team invited interested community members to participate in a series of three focus groups during the first week in August to discuss the following topics: Key themes from community engagement survey Tourism + Economic Development Food Security The first focus group discussed the key themes that emerged from the community survey, community leader interviews, and presentations to Boards, Commissions, and community groups. These topics included housing, cost of living, tourism, sustainability, infrastructure, financial stewardship, economic development, and communications and engagement. The second focus group included representatives from the local business community and discussed tourism and economic development specifically, as well as the relationship between tourism and quality of life. The third focus group included representatives from the Sitka Local Foods Network, Alaska Food Policy Council, food banks, grocery stores, local food producers, and other community organizations. This group discussed food security and explored opportunities to alleviate high cost of food, increase access to fresh produce, improve environmental sustainability, and support disaster preparedness. Participants were encouraged to share their experiences, develop ideas, and discuss the role CBS should take in addressing these community priorities. The themes that emerged from the focus groups were consistent with the community input gathered in the survey, interviews, and presentations. The discussions helped guide the project team in finetuning the goals and actions to support community priorities. OUTREACH SUMMARY The project team provided opportunities throughout the process for the community to learn about the strategic planning process and provide input on the strategic plan. The following matrix outlines the themes from each outreach activity. 24 Page 31 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Outreach Activity Date Participants Themes Strategic Planning Workshop March 18 Cost of Living/Quality of Life • Fiscal Sustainability • Communications + Engagement • Organizational Development • Infrastructure • Economic Development Community Group Presenta- March -July 11 groups Love the community feel and access to nature tions Affordability— housing, food, cost of living • Growing retiree population/workforce shortage • Isolated economy/not enough services to support residents • Infrastructure maintenance • Encourage/support youth to stay in community • Housing • Support economic development • Workforce development Community Survey May - July 635 Cost of living • Housing • Food security • Cost of utilities • Childcare • Tourism • Quality of life • Economic development • Education Community Leader Interviews June - July 8 Love the community, nature, and quality of life • Housing — need more availability, concern about high cost • Balancing tourism with protecting quality of life • Cost of living — people are being pushed out • Lack of childcare • Housing - More efficient land use, open up new land, multi -family • Food — remove sales tax on food • Continued relationship with the Sitka Tribe of Alaska • Continued community engagement effort by City to build trust and positive relationship with community. Staff Survey June -August 56 • Opportunity to improve communication and engagement with employees • More employee support programs are needed • Employee pay should be evaluated • More access to professional development • Shared vision and goals for the team • Imbalance of workloads for departments • Need for customer service training • Cost of living has a major impact on staff Focus Groups June - August 35 Housing availability and affordability • Economic development • Tourism • Fiscal sustainability • Community engagement • Food security W. Page 32 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. The community outreach process gathered thousands of comments from community members for the strategic plan. The chart below provides a matrix of the goals and actions with comments gathered during the community engagement activities to provide context for action implementation. •. jAction Community 1. Preserve the quality of 1.1 Convene community Work with Sitka School District and other organizations to develop life for all Sitkans partners to develop a options for more before/after school care for school -aged children community -wide strate- and daycare for infants/toddlers. gy to improve access to childcare 1.2 Develop a plan to improve Apply for grants and/or other funding options to develop permanent housing options for all in af-fordable housing units. Sitka Open additional land for develop-ment. Change building code to allow for higher -density housing. Designate CBS employee to coordi-nate efforts, write grants, and work with community organizations. Workforce housing. 1.3 Identify opportunities to Explore utility bill credit program for sustainability measures taken on relieve the burden of utility property. costs 1.4 Review the impacts and Limit the days and numbers of cruise ships. Consider only allowing benefits of tourism, and cruise ships on weekdays. Create policies that support locally -owned develop policies that pri- downtown storefronts, including the transfer of ownership/manage- oritize the quality of life for ment. Planning for the boom and bust cycles of tourism and revenue. all Sitkans Allow one-way street option on cruise ship days to allow local access while giving tourists enough space. More opportunities for year-round employment. Branding and wayfinding to support town identity and consistent look and feel of community. Shop local first efforts. Convene local business owners to hear direct- ly from their experience in summer 2022 season. 1.5 Convene community part- Sitka Assembly declare food security a priority. ners to develop an action Secure land for community gardens. plan that will address Designate CBS employee to support community garden coordina- the challenges of food tion, gardening labor, grant writing and other funding opportunities to security support efforts, establishing and coordinating neighborhood resil- iency districts for community disaster preparedness. Remove the tax on food. Agricultural zoning to allow lower tax rate for people growing food. Lower utility rate for vertical gardening. Improve access to fresh produce. Vertical indoor gardening to provide year-round produce. Support soil health through composting. Priori- tize edible landscaping over ornamental on public land. Potential part- ners: Sitka Tribe of Alaska, University of Alaska, Sitka School District, local radio stations, Alaska Longline Fishermen's Association (ALFA), local grocery stores, etc. Town hall meeting with community mem- bers to discuss food security. Conduct a citywide emergency food drill. Educational programming for emergency food storage. Establish neighborhood resiliency districts to support emergency food pre- paredness. Work with fishing industry partners to donate seafood to food insecure community members. Create a pool of funds to support processing of seafood, storage, and distribution. 44 Page 33 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. 2. Improve communi- 2.1 Develop a communi- Town hall meetings with trained moderators. cations and strengthen ca -tion and engagement Social media. relationships within the plan to increase en -gage- Local media (newspapers, radio, etc.) community and organiza- ment and participa-tion Update CBS website. tion through storytelling and Public education on role of taxes, how money is allocated, etc. enhancing Sitka's com- munication tools and networks 2.2 Identify opportunities Sitka Tribe of Alaska to foster relationships Filipino community with underrepresented groups/populations in the community and imple- ment findings to improve service delivery to these groups 2.3 Annually convene non -profits, CBS boards and commissions, and other community groups for a community summit to discuss community chal-lenges, updates, and opportunities for col -lab - oration 3. Align resources and 3.1 Develop a fiscal policy financial and economic that includes guidelines policies for a sustainable for areas of fiscal op - community erations such as debt management, infrastruc- ture replacement, metrics for fiscal health of funds, reserves, and other areas 3.2 Prepare financial forecasts and life cycle models for all assets to bring resourc- es in alignment with the City's top priority needs 3.3 Convene economic Internships and mentorships with local businesses. partners to explore the ad- Align industries with courses offered at high school so graduates are dition of business support more prepared for available jobs. services and employment Foster partnerships between business community and Sitka School training programs District. Support working waterfront, fix seawall, affordable harbor rates 3.4 Identify and implement policies that will balance the economic benefits of tourism with the impacts on Sitkan's quality of life PVA Page 34 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. 4. Plan and invest in sus- 4.1 Identify and pursue fund- Higher property tax for non-residents. tainable infrastructure for ing to address existing Progressive income tax. future generations capital needs and de- Revisit property tax and sales tax exemptions for senior residents. ferred maintenance 4.2 Develop asset man- agement plans for future capital investments 4.3 Identify the levels of service for CBS's infra- structure and identify the resources needed to support these levels 4.4 Collaborate with public land management agen- cies and stakeholders to maintain and develop sustainable active trans- portation infrastructure, including parks, fields, cabins, trails, and water access 5. CBS is recognized as 5.1 Develop a workforce Training varies greatly by department - communicate opportunities being a great place to work development plan that and make it accessible to all and excellent service pro- outlines clear policies for vider to the community staff training and profes- sional development 5.2 Prepare a succession plan Conduct a salary survey. that addresses develop- Evaluate employee support and wellness programs. ment of the current work- Develop internship opportunities targeted for Sitka students. force and future workforce recruitment and retention strategies 5.3 Improve customer service Provide customer service training for employees. levels and evaluate pro- Bring more services online to allow people to do business with CBS cess improvements for outside of business hours. service delivery Evaluate improvements to trash service and receptacles. 5.4 Identify and develop nec- essary standard policies and procedures to pro- mote organization -wide stability and service -level consistency 5.5 Develop an internal com- munication and engage- ment plan and policies to improve the flow of infor- mation in the organization and increase employee engagement 28 Page 35 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. SUMMARY OF COMMENTS RECEIVED SEPT. 5-19 ON THE STRATEGIC PLAN The draft strategic plan was presented to the Assembly on September 1, 2022. Following the presentation, the plan was posted online with a community comment form to submit feedback on the draft plan. Twenty one comments were submitted, and a summary of those comments are provided below: Do you feel the CBS Strategic Plan reflects your priorities for the next five years? 21 Responses: » 13—No » 5—Y » 3 — Somewhat Comments: » Doesn't include access to nature » Doesn't include commercial fishing industry — shipyard » Want more separation from U.S. Forest Service » No mention of active transportation (walking and biking) » No mention of trails, parks, or recreation, access to nature » No boat haul -out » No sure it is feasible for Sikta to limit # tourists » Get buses off road » Make arts a priority » Keep quality of schools » Substance abuse/domestic violence » It does not require robust financial analysis, quantitative analysis, and marketing research to support key resource allocation decisions. » Does not include aging school infrastructure or plans for replacement » Concern that succession planning will never happen What would you add, remove, or change? » Tourism » Financial transparency and stewardship with infrastructure, utilities » Access to nature/trails, cabins, etc. Comments: » Work with other agencies to support trail and cabin system (Sitka Trail Works) » Wants transparency on enterprise fund and electrical infrastructure upgrades » More time for public comment — difficult for commercial fishing industry to weigh in » Work with other agencies to develop an off-road trail system » Work with legal team to remove fees the U.S Forest Service charges the community of Sitka » I would like to see more attention given to » size and shape of tourism and the benefits vs. the impact on quality of life for residents » tax structure for seasonal residents, especially as it relates to income producing operations and property ownership » sustainability and support of our substantial fishing industry, which also strongly supports our quality of life » Look at financial models for utility master plans » Under the infrastructure topic we need to closely evaluate the assumptions that engineering planners use to develop our utility Master Plans to ensure we are not inflating future costs unnecessarily. » Second, we need to closely evaluate the financial models used by Finance to make sure we are not duplicating and thus compounding inflation factors that may already be embedded in the utility Master Plans. » The community should consider a local annual dividend payment for residents, so we feel we are sharing in the financial windfall from the cruise income. » I would add improvements for walkers and bikers. Young and many older people cannot drive. » If CBS is to support the essential service of walking and biking facilities, CBS staff need to actively collaborate with other public land management agencies and stakeholders to maintain and develop shared infrastructure. Sitka Trail Works recommends an action, under Goal 1 or Goal 4, that encourages improved planning and coordination. 4.4 Collaborate with public land management agencies and stakeholders to maintain and develop sustainable active transportation infrastructure, including parks, fields, cabins, trails, and water access. » As the only non-profit dedicated solely to improving Sitka's outdoor recreation infrastructure, Sitka Trail Works is currently leading a multi -jurisdictional trail planning process. Our public engagement process has reached over 800 Sitkans, including 787 who responded to the 2022 Trail Plan Survey, 94% of whom reported using the trails at least several times a year. » Eliminate the"sustainability"effort. This is simply virtue signaling and a waste of time, effort, and money. Simply focus on delivering services as cheaply and efficiently as possible. Get out of the way of private industry and let market forces take care of affordability and availability. » One area I do applaud this effort is the area of tourism and quality of life. I am suspicious that the effort will be not focused on quality of life, but on the almighty tourist dollar at the expense of quality of life. This past summer the unrestricted onslaught of cruise ship passengers definitely lowered the quality of life for residents. There has to be a balance and a serious discussion about this. Independent travelers had no chance to go visit the many sites around Sitka because of the crush of humanity. 29 Page 36 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. Residents couldn't enjoy them either. The number of ships needs to be restricted with a few days a week with none so residents and independent travelers have opportunities. If part of this effort is to help local businesses why not focus on businesses that stay open all year and not shut down when the tourist season is over. n Fewer visitors • 1.3 Identify opportunities to relieve the burden of utility costs Explore utility bill credit program for sustainability measures taken on Property —this sounds like it would only benefit property owners. What about renters? People who rent have no control over the sustainability measures that a building owner might take. How can utility costs be made more manageable for renters? • I personally was less invested in the communication and the City employee development aspects. • There is focus on affordable housing and utilities. However, there are parts talking about income tax, reduction of sales tax exemptions, etc. sustainability includes taxes. Saving money from utilities to only increase taxes is a fools errand. The city needs to leverage new revenue streams not from residents. Invest that into the community and stop increasing taxes. There is a breaking point. Also, limiting tourism due to a minority of the population is foolish. Sitka's growing tourism industry is the only growing economic industry, other than government. Don't stop this growth, as this is the future of our economy. • Add: let residents be financially secure and use their homes the way they want, short term rentals. • Engage with former employees to learn from their experiences, pass on institutional knowledge, etc. • Set up system to tie strategic plan and budget so as to not inadvertently fund anything that is not in the strategic plan • Healthcare services + costs • Staff communication with the public+ customer service • Prioritize cultural equity [Cie] Page 37 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.a. �9tihe Future To 3` 9 `o �o \\Sitka, Alaska// Sitl�a City and Borough of Sitka 100 Lincoln Street Sitka, AK 99835 _ www.cityofsitka.com 907.747.1800 her z, Page 38 of 109 Review the 2018-2023 Strategic Plan AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT JANUARY 25, 2024 4 ' x ASSEMBLY WORK SESSION SUBJECT: Consideration And Discussion To Change The Travel Policy ORIGINATOR: Dora Cross, Finance Director RECOMMENDATION: Update the travel policy to define eligible expenditures and clarify procurement requirements associated with allowable repayment per the IRS and GSA travel requirements. DISCUSSION: ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 39 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Kodiak Island Borough Travel Policy Date Issued: xx/xx/xxxx PURPOSE To outline the Borough's travel arrangement procedures and guidelines for business related travel. SCOPE This policy applies to all employees and elected or appointed officials who are authorized to travel for Borough business. It does not address expenses associated with travel not specified in the policy, nor compensation for time spent working at the destination. POLICY All Borough travel must be approved and processed in accordance with this policy. The Borough will not reimburse expenses incurred that violate this policy. Travelers should attempt to travel by the most economical method possible and travel only when necessary to perform Borough duties and to further Borough objectives. Employees in positions classified as non-exempt, under the Fair Labor Standards Act (FLSA), may be eligible for compensation for the time they spend traveling. The compensation of a non-exempt employee receives depends on the type of travel and times of travel. POLICY DETAIL A. COMPENSATION Since the regular working hours of full-time Borough employees consist of five-day weeks, Flexible Scheduling Agreements can be used to document a change in the regular Monday — Friday work week. For example: If travel on Sunday is necessary for a Monday conference, a Flexible schedule Agreement could temporarily change the Monday — Friday work week to a Monday — Thursday and Sunday work week. The chart below summarizes compensation requirements for travel as they relate to normal work hours and normal workdays: Normal Workday Not a Normal Workday Normal work hours Compensable Compensable Non -work hours Generally non -compensable Generally non -compensable KIB Travel Policy 11 Page 40 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. 1) All in a Day's Work (see definition at H.1) Non -compensable time: a. Travel from the employee's residence (home, hotel, etc.) to the airport, ferry terminal, etc., and vice versa (considered regular commuting) b. Meal breaks Compensable time: c. Time spent traveling, as a passenger, excluding [la -b] above d. Flight delay e. If an employee is unable to return on the same day due to circumstances beyond their control (weather, mechanical problems, etc.), review overnight section. 2) Overnight (see definition at H.5) Non -compensable time: a. Traveling from the employee's residence (home, hotel, etc.) to the airport, ferry terminal, etc., or vice versa (considered regular commuting) b. Meal breaks c. Time spent traveling, as a passenger, outside of normal working hours on any day Compensable time: d. Time spent traveling as a passenger, during regular work hours on any day excluding [2a -c] above e. Time spent picking up or arranging for the shipment or transportation of Borough equipment f. Time spent traveling as a driver, excluding [2a -c] above g. Flight delay which requires remaining at the airport 3) Home to Work and Work to Home (see definition at H.3) Non -compensable time: a. Traveling to and from the principal work activity b. Traveling from a town to an outlying site to get to the employer's premises and the return c. Driving a Borough vehicle while going to and from home d. Traveling to work when an employee is called back to work after going home for the day Compensable time: a. Chauffeuring other employees to and from work, as directed by the employer b. Driving a Borough vehicle on business c. Traveling from one job site to another job site during the workday d. Traveling from an outlying job at the end of the scheduled workday to the employer's premises KIB Travel Policy 21 Page 41 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. B. PROCEDURE 1) Approval of Travel Authorizations Prior to traveling, a Travel Authorization form must be submitted to Finance including pre -travel cost estimates and approval signatures. The Travel Authorization will be returned to the employee so that after travel is completed, the post -travel section and final cost documents can be attached and resubmitted to Finance. 2) Calculating and Reporting Travel Time Employees are responsible for accurately tracking, calculating and reporting travel time on their timesheet(s) in accordance with this policy. Meal periods should be deducted from all travel time. Travel time should be calculated by rounding up to the nearest quarter hour. 3) Payment of travel and related travel expenses The Borough is responsible for paying for business related travel and travel related expenses. Personal payment of expenses is not allowed except for those items, such as ground transportation, that cannot be paid for in advance of travel. The Borough will not pay for, nor reimburse, items related to any travelers that are not the employee, entertainment, movies, laundry service, room service, extra beds or cribs or other similar expenses. Under no circumstances will the Borough pay for alcohol. C. AIRFARE 1) All airfare must be purchased by the Borough and must be in coach class. Travelers are not required to fly "red-eye" nor stay over a Saturday night to obtain a lower fare. Travelers may use their personal upgrades to fly business or first class if there is no extra cost to the Borough. 2) The Borough will not reimburse employees for frequent flyer miles used to fly on Borough business, however, fees and taxes incurred to use the miles may be reimbursed. 3) The Borough will pay business related baggage fees. D. LODGING 1) When traveling, the Borough will pay for lodging the night before official business, and for each night of an official business day. However, Travelers should attempt to return on the last official business day (rather than the next day) whenever possible. 2) If a Saturday layover results in lower airfare, the Borough will pay for additional lodging if the end result is a net savings. KIB Travel Policy 31 Page 42 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. E. GROUND TRANSPORTATION 1) Use public transportation, shuttles, ride services and taxis if reasonable and less expensive than rental cars. 2) The Borough is insured for rental car use; rental car insurance will not be reimbursed. Borough insurance does not cover periods the vehicle is used for personal reasons. 3) Parking/traffic violations and locksmith fees are not reimbursable. F. PER DIEM 1) Per diem is an allowance for meal rates only and does not include lodging or incidentals. 2) The U.S. General Services Administration (GSA, gsa.gov) establishes the per diem reimbursement rates that federal agencies use to reimburse their employees for subsistence expenses incurred while on official travel within the continental U.S. (CONUS), which includes the 48 contiguous states and the District of Columbia. 3) The U.S. Department of Defense (DOD) establishes rates for travel in non -foreign areas outside of CONUS, which includes Alaska, Hawaii and U.S. Territories. The U.S. Department of State establishes rates for travel in foreign areas. For more information on rates established by DOD and the State Department visit www.defensetravel.dod.mil and aoprals.state.gov. 4) Day travel, during regular working hours, does not include per diem. 5) First and Last Day of Travel - On the day of departure from the permanent work site and on the day of return, a Traveler receives 75% of the applicable meal rates regardless of departure or return time. G. INTERRUPTIONS OR DEVIATION OF TRAVEL FOR TRAVELER CONVENIENCE 1) Any interruption or deviation from the most direct and efficient means of travel for Traveler's convenience requires prior approval by the manager. Such approvals must weigh the interests of the Borough as Travelers are not automatically entitled to deviations for personal convenience. Any abuse of the privilege will result in the employee losing the privilege to combine personal travel with business/training travel and can result in disciplinary action. 2) Any additional time or expense resulting from an interruption or deviation for Traveler convenience shall be borne solely by the Traveler. Travelers are responsible for researching and purchasing air, car, and lodging for the personal portion of the travel on their own time. Booking personal travel is not a work function, and Borough travel planners cannot research or purchase travel outside of the minimum itinerary required to conduct Borough business. KIB Travel Policy 41 Page 43 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. 3) Travelers should be aware that personal deviations from the Borough -authorized itinerary may negate workers' compensation coverage and any other Borough provided travel insurance. 4) When a Traveler interrupts business travel for personal reasons, the following apply: a) Airfare, per diem, travel allowances, and reimbursements are calculated for the minimum itinerary that is required to conduct Borough business, without regard for the actual itinerary that includes the deviation for personal convenience. a. For example: A Traveler is traveling on Borough business (in Seattle) and the business is concluded at noon on Wednesday and for personal reasons, the Traveler will be taking a side trip to Portland and will be returning to the work site the following Monday from Portland. In this example, the Traveler's entitlement to airfare, per diem, mileage, wages and other travel reimbursements ends at the conclusion of the conference. b. For example: A Traveler is traveling on Borough business (in Seattle) and the business begins at 8am on Monday and for personal reasons, the Traveler begins travel on Saturday from Las Vegas. In this example, the Traveler's entitlements for airfare, per diem, mileage and other travel reimbursements begin Sunday at the check in at the hotel. b) If the only deviation is an extension of dates on either end of the Borough - authorized business destination, no additional per diem or travel allowances will be allowed for the non -business portion of the stay. a. For example: A Traveler is traveling on Borough business (in Seattle) and the business is concluded at noon on Wednesday and for personal reasons, the Traveler has delayed the trip returning to the work site until Sunday. In this example, the Traveler's entitlement to per diem, mileage, wages and other travel reimbursements ends at the conclusion of the conference. However, since the origin of the flight for the return trip to the work site has not changed, airfare, per diem, wages and other travel reimbursement is reinstated at the resumption of travel. c) A Traveler requesting to use personal discount coupons, purchase companion travel, or travel that increases airfare, will make the transportation arrangements for the entire trip on their own time. These arrangements will be purchased by the Traveler using a personal form of payment instead of a Borough form of payment. Request for reimbursement of the Borough's portion of the airfare can be requested after travel is complete. d) A Borough -authorized fare quote must be obtained before personal travel is booked or at the time the travel is approved, whichever is later, for a price comparison to determine Traveler reimbursement. After travel is complete, the Traveler must present a copy of the ticket receipt or itinerary showing payment and the Borough -authorized fare quote to obtain reimbursement. The Borough will reimburse the lesser amount of either the deviated ticket purchased or the Borough -authorized fare quote. KIB Travel Policy 51 Page 44 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. e) Rental cars obtained for official Borough business are authorized only for the minimum business itinerary. The rental period may not extend to personal travel. f) Any additional time that reduces the Traveler's work week related to indirect travel will be charged to leave or leave without pay. In the example 4 a) above, the employee's leave status would begin Wednesday at noon at the conclusion of Borough business. Leave in conjunction with business travel must be documented in prior approval and supervisors are responsible for ensuring that leave is reported appropriately for Travelers they supervise. g) Per diem is allowed when a Traveler is granted leave due to illness with the Manager's approval. However, the per diem allowance shall not be authorized for a period of illness exceeding three calendar days in any one period of absence. h) Employees combining business and personal travel are responsible for being informed regarding the travel policies and cautioned that airfares may result in a liability to the employee, should the reason for the business travel be cancelled. Employees leaving on vacation in conjunction with the business event will become responsible for all costs should the business event be cancelled. Employees opting not to travel if the business event is cancelled will be responsible for the cost of travel that the Borough cannot recover that was attributable to the personal portion of the airfare. The employee may be reimbursed, at the Borough's option, for the business portion of unused tickets. The business portion of unused tickets paid to employees must be monitored as Borough assets until they are used or expire. Employees leaving the Borough prior to the expiration of such a ticket are required to return the Borough payment for any business portion that is still available for use by the employee. Voluntary denied boarding compensation where the Traveler voluntarily vacates their seat and takes a later flight may be retained by a Traveler (viewed as an insignificant personal travel credit under ethics rules). A Traveler cannot volunteer for denied boarding on an outbound flight unless the Traveler has previously approved personal travel for the beginning of the travel period. Nor may a Traveler volunteer for denied boarding if it may cause a delay in return to work. By accepting a voluntary bump on the return portion, the Traveler puts himself on personal travel rather than Borough business. Travel Status ends, no further per diem is allowed, and all Borough insurance coverage ceases for the duration of the trip. The Traveler is responsible for any additional travel expenses caused by the voluntary action. j) Frequently Asked Questions: httr):Hdoa.alaska.gov/dof/travel/fags.html KIB Travel Policy 61 Page 45 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. H. DEFINITIONS 1) All in a Day's Work An employee sent out of town for one day is not paid for the time spent traveling from home to the local plane or ferry terminal. The employee must be paid for all other travel time, except meal periods. When an employee is directed to temporarily report to another work site for training, which is within normal commuting distance from the employee's assigned work site, it is considered home to work travel. 2) Crossing Time Zones Compensable time is based on the place of origin. For example, when an employee travels from Kodiak to Washington, D.C., compensable time is based on Kodiak time. For the return, compensable time is based on Washington, D.C., time. 3) Home to Work and Work to Home Home to Work and Work to Home is also called commute time. It is well established that normal travel from home to work is not working time, no matter how long the commute. An employee is not at work until they are at the work site. 4) Normal Commuting Distance Normal travel between home and work is not working time, no matter how long the commute. In an ordinary situation where an employee commutes to and from the work site, even if the employee must travel to different work sites, the employee is not entitled to additional compensation for the travel time. 5) Overnight Travel or Travel Involving more than One Work's Day When an employee travels overnight on business, they must be paid for time spent traveling (except for meal periods) during their normal working hours on their non -working days (such as Saturday, Sunday and holidays), as well as on their regular working days. For example, if an employee is scheduled to work 8:00 a.m. to 5:00 p.m. Monday through Friday and the employee is required to travel between the hours of 6:00 p.m. and 11 p.m. (on any day of the week), the employer is not required to pay for the travel time. If, however, the employee is required to travel between the hours of 8:00 a.m. and 5:00 p.m. (on any day of the week), the employer is required to pay for the travel time. 6) Traveling with Coworkers When traveling with more than one employee, the compensable hours may vary for each employee. For example, an employee who drives to the airport to attend training with three coworkers as passengers. If the trip is made before or after normal work hours, only the driver is working. If the trip occurs during normal business hours, all employees are compensated. KIB Travel Policy 71 Page 46 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. 7) Waiting to Engage vs. Engaged to Wait Waiting to engage is the time an employee may appear to be on company time but is not required to be on company time. For example, an employee is traveling all in a day and is required to check-in one hour before their flight is scheduled to depart. If the employee chooses to arrive at the airport 1 '/2 hours before the scheduled departure time, the initial'/2 hour is not compensated. If there is no designated check-in time by the carrier, check-in time with default to 1 hour before departure. Engaged to wait is the time an employee is required to wait during travel. For example, an employee's flight is delayed and they are directed by the airline to remain at the airport in preparation for boarding, if they are unable to use the time effectively for their own purposes, they are compensated for the duration of the delay. Note: Waiting time is compensable if it is not of sufficient duration that an employee could reasonably use the time to do other things. For example: if a flight is delayed four hours and the employee does not have to remain in the airport, the entire four hours may not be compensable. If the employee is required to remain in the airport for the entire delay, regardless of its length, the time is compensable. 8) Work Work includes the commonly understood productive employee time. 9) Work Site Work site is the location where the employee begins work, as assigned by the employer. For example, an employee is directed to report to local convention center to attend training. I>�7��•1�13�� Defense Travel Management Office: https://www.travel.dod.mi[fTravel-Transportation-Rates/Per- Diem/#:—:text=Per%20die m%20is%20a%20set,whi le%20on %20official%20government %20travel. State of Alaska: https://doa.alaska.gov/dof/payroll/traveltime.html U.S. Department of Labor: https://www.dol.gov/general/topic/workhours/traveltime U.S. General Service Administration: https://www.gsa.gov/travel/plan-book/per- diem-rates/frequently-asked-questions-per-diem#1 KIBTravel Policy 81 Page 47 of 109 Consideration And Discussion To Change The Travel Policy STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDU III. Travel as Time Worked A. Purpose AGENDA ITEM #2.b. State Admin Travel Procedures To provide departmental human resources staff with guidelines regarding when to credit work time to an overtime eligible employee who is in travel status. B. Scope All classified and partially exempt overtime eligible employees are subject to this policy. C. Authority 29CFR AS 39.25.150(18) 2 AAC 07.390 The collective bargaining agreements provide additional specific provisions. D. Policy Overtime entitlements shall be identified in accordance with the Fair Labor Standards Act (FLSA), unless a more favorable benefit is provided by contract. When determining entitlements for an employee in the Labor, Trades and Crafts Unit, special attention must be paid to the collective bargaining agreement as its provisions are significantly different from the other agreements. E. Procedures 1) Verify the employee's overtime eligibility. 2) Review relevant timesheet, travel questionnaire or report, and other materials as needed. Confirm accuracy of data. Effective: 9/16/01 Page 1 Page 48 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDUR 3) In accordance with the applicable contract or the FLSA, identify: a) Any periods of travel time; and b) All travel time that is also time worked. 4) Determine if travel time is compensable in accordance with: a) Applicable contract; b) The FLSA i) All in a Day's Work (see definition at F.6) (1) Non -compensable time: (a) Travel from the employee's residence (home, hotel, etc.) to the airport, ferry terminal, etc., or vice versa (b) Meal breaks (one-half hour or longer) while in travel status (2) Compensable time: (a) Time spent traveling, as a passenger, excluding (1)(a) above (b) Flight delay (c) If an employee is unable to return on the same day due to circumstances beyond his/her control (i.e., weather, mechanical problems, etc.), the overnight section (ii) below is applied. ii) Ovemight (see definition at F.7) (1) Non -compensable time: (a) Traveling from the employee's residence (home, hotel, etc.) to the airport, ferry terminal, etc., or vice versa (b) Meal breaks (one-half hour or longer) while in travel status (c) Time spent traveling, as a passenger, outside of normal working hours on any day (2) Compensable time: (a) Time spent traveling as a passenger, during regular work hours on any day excluding ii(1) above (b) Time spent picking up or arranging for the shipment or transportation of State equipment (c) Time spent traveling as a driver, excluding ii(1) above and in accordance with Section 472 of the Thompson Guide on FLSA 29.C.F.R.785.38 Effective: 9/16/01 Consideration And Discussion To Change The Travel Policy Page 2 d M sv 3� M O M i. Page 49 of 109 AGENDA ITEM #2.b. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDU (d) Flight delay which requires remaining at the airport iii) Home to Work and Work to Home (see definition at F.3) (1) Non -compensable time: (a) Traveling to and from the principal work activity (Portal -to -Portal Act; 29 CFR, Chapter 9) (b) Traveling from a town to an outlying site to get to the employer's premises, and the return (c) Driving a State vehicle while going to and from home (d) Traveling to work when an employee is called back to work after going home for the day (2) Compensable time: (a) Chauffeuring other employees to and from work, as directed by the employer (b) Driving a State vehicle on business (c) Traveling from one job site to another job site during the workday (d) Traveling from an outlying job at the end of the scheduled workday to the employer's premises 5) Pay employee according to applicable contract provisions first. If none exist, then pay employee according to the FLSA. F. Definitions 1) Work Work includes the commonly understood productive employee time. Work also includes break periods of 15 minutes or less, training required or approved by the employer, and certain employee travel (discussed below). 2) Travel Time According to the FLSA, certain travel time is compensable. The FLSA's definition of travel is independent of the definition of "travel" or "travel status" as it relates to per diem, meal allowances, or employer liability for worker's compensation purposes. Travel time includes check-in and baggage pick up time. Employee status during travel time is either as a passenger or a driver or pilot. AAM60.Travel is applicable when determining mileage and per diem only. It is not applicable when determining Travel as Time Worked as outlined in this SOP. Effective: 9/16/01 Consideration And Discussion To Change The Travel Policy Page 3 !y M W W M O M a Page 50 of 109 AGENDA ITEM #2.b. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDU 3) Home to Work and Work to Home Home to Work and Work to Home is also called commute time. It is well established that normal travel from home to work is not working time, no matter how long the commute. An employee is not at work until s/he is at the work site. 4) Work Site Work site is the location where the employee begins work, as assigned by the employer. Example: employee is directed to report to local convention center to attend training. 5) Crossing Time Zones Compensable time is based on the place of origin. For example, when an employee travels from Juneau to Washington, D.C., compensable time is based on Juneau time. For the return trip, compensable time is based on Washington, D.C., time. 6) "Travel, All in a Day's Work" An employee sent out of town for one day is not paid for the time spent traveling from home to the local plane or ferry terminal. The employee must be paid for all other travel time (except any time spent eating while traveling). When an employee is directed to temporarily report to another work site for training, which is within normal commuting distance from the employee's assigned duty station, it is home to work travel. 7) Overnight Travel or Travel Involving more than One Work Day When an employee travels overnight on business, s/he must be paid for time spent traveling (except for meal periods) during his/her normal working hours on his/her non -working days (such as Saturday, Sunday, and holidays), as well as on his/her regular working days. 8) Waiting to Engage vs. Engaged to Wait Waiting to engage is the time an employee may appear to be on company time but s/he is not required to be on company time. For example: the employee is traveling all in a day and is required to check-in one hour before his/her flight is scheduled to depart. If the employee chooses to arrive at the airport 1 '/z hours Effective: 9/16/01 Consideration And Discussion To Change The Travel Policy Page 4 Page 51 of 109 AGENDA ITEM #2.b. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDUR before the scheduled departure time, the initial 1/2 hour is not compensated. It is waiting to engage time. Engaged to wait is the time an employee is required to wait during travel. For example: an employee's flight is delayed. S/he is directed by the airline to remain at the airport in preparation for boarding and is unable to use the time effectively for his/her own purposes. S/he is compensated for the duration of the delay. It is engaged to wait time. Note: Waiting time is compensable if it is not of sufficient duration that an employee could reasonably use the time to do other things. For example: if a flight is delayed four hours and the employee does not have to remain in the airport, the entire four hours may not be compensable. If the employee is required to remain in the airport for the entire delay, regardless of its length, the time is compensable. 9) In Conjunction with a Day's Work (LTC only) Time may be considered as in conjunction with a day's work when it is directly attached to the scheduled workday. For example: the employee's scheduled work day is 8:00 — 4:30. S/he travels from 4:30 to 5:30. This travel time is in conjunction with a day's work for LTC employees only. 10)Normal Commuting Distance Normal travel between home and work is not working time, no matter how long the commute. In an ordinary situation where an employee commutes to and from the work site, even if the employee must travel to different work sites, the employee is not entitiled to additional compensation for the travel time. G. Addenda Effective: 9/16/01 Consideration And Discussion To Change The Travel Policy Page 5 Page 52 of 109 AGENDA ITEM #2.b. State of Alaska Travel Policy AAM 60. TRAVEL 60.010 Introduction to Travel 04/13 60.020 Travel Definitions 11/22 60.030 E -Travel 04/14 60.040 Travel Approvals 08/20 60.050 Travel Purchase Policies 10/15 60.060 Payment Methods for Transportation and Expenses 10/19 60.065 Taxes Related to Travel 01/11 60.070 Travel Advances 06/18 60.080 Interruption or Deviation of Travel for 01/21 Traveler Convenience 60.090 Unused Transportation and Accommodations 07/14 60.100 Airline Delays, Rescheduling, and Overheading 01/07 60.110 Excess Baggage 04/05 60.120 Rental Cars 10/15 60.130 Airport Shuttle, Courtesy Van, and Taxi Service 10/15 60.140 Privately Owned Vehicles 10/16 60.150 Privately Owned Aircraft 11/22 60.160 Charters and Group Transportation 01/10 60.170 Alternatives to Travel 04/05 60.180 Boards and Commissions 01/07 60.190 Health and Safety of Travelers 01/10 60.200 Travel Related to Contracts 10/08 60.210 Traveler Reimbursement 11/22 60.220 Travel Expenses - Required Receipts and 10/15 Documentation 60.230 Third Party Reimbursements 01/07 60.240 Lodging Types and Rates 05/16 60.250 Meal and Incidental Expense Allowances 10/19 60.260 Contracting for Subsistence 07/05 AAM 60.010 Introduction to Travel (04-13) The travel policies of the State of Alaska are adopted by the Commissioner of the Department of Administration in accordance with AS 39.20.160. State agencies and Travelers are required to comply with these policies whenever traveling on state business and are prohibited Alaska Administrative Manual — Accounting Travel 60.1 Page 53 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. from adopting their own policies that differ from statewide policies without the approval of the Commissioner of Administration. Commissioners or designee may approve policy exceptions on a trip -by - trip basis for subordinate personnel within their agency based on documented circumstances or unique business requirements. Policy exceptions for commissioners must be approved by the Commissioner of the Department of Administration. Policy exceptions for the Department of Administration must be approved by the Governor's Chief of Staff. The purpose of the travel policies is to provide approval to travel on state business, and to provide reimbursement for actual and necessary expenses incurred by Travelers while traveling on state business. The policies apply uniformly to all Travelers unless otherwise provided for by a collective bargaining agreement. When there is a conflict between these policies and a collective bargaining agreement, the relevant provisions of the collective bargaining agreement supersede. State agencies may not impose more restrictive rules than set forth in the travel policies or in collective bargaining agreements. AAM 60.020 Travel Definitions (11-22) Commercial Lodeina Facili A Commercial Lodging Facility is a licensed entity that is in the business of selling lodging to the general public and includes hotels, inns, motels, apartments, and campgrounds. Travel Administrator Travel Administrators are agency personnel responsible for maintaining the travel profiles for their agency. They may or may not also be the Travel Coordinator. Travel Coordinator Employee designated within an agency to oversee the travel function. Travel Coordinators assist and train travel planners, monitor travel operations, and make recommendations on statewide travel policy. Du1y Station The Duty Station of a Traveler includes the city, town, or village within 50 miles of where the Traveler spends the major portion of their working time, or the place to which the Traveler returns to duty on completion of special assignments. On a case-by-case basis, commissioners or designee may identify a radius or commuting area that is broader than 50 miles within which Per Diem will not be allowed for travel within one calendar day. Alaska Administrative Manual — Accounting Travel 60.2 Page 54 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. A Traveler that performs official state business duties within their defined Duty Station is not eligible for privately owned vehicle mileage reimbursement. Commissioners or designee may approve exceptions on a case-by-case basis based on documented circumstances or unique business requirements. See AAM 60.140 for details on taxability of such an allowance. Emergency An Emergency is defined as an unforeseen set of circumstances that calls for immediate action. Emergencies include those that are the result of business-related occurrences, as well as personal situations. Personal emergencies generally do not affect Travel Status, except in the following cases: • Traveler suffers a serious health condition [as defined by AS 39.20.550(5)1 while in Travel Status • Death of an immediate family member [as defined by 2 AAC 08.999(c)] occurs while Traveler is in Travel Status • Other situations deemed by agency management as severe enough to affect Travel Status E -Travel Managed travel program for the State of Alaska Executive Branch. E -Travel Management Team Comprised of the State Travel Manager, as well as others from the Division of Finance that support this program. E -Travel Online Online booking tool used for travel arrangements provided by the travel management contractor. Lodging Allowance Lodging Allowance is the portion of Per Diem that covers lodging, generally the actual cost of the Traveler's hotel room, unless otherwise stated in individual bargaining unit agreements. M&IE Meals and Incidental Expense allowance is the portion of Per Diem that reimburses Travelers for the cost of meals and incidental expenses including discretionary tips. Alaska Administrative Manual - Accounting Travel 60.3 Page 55 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Non -Commercial Lodeine Facili A Non -Commercial Lodging Facility may include, but is not limited to, a public facility in a rural setting such as a community building or school, motor home, or private home. Such facilities will generally lack amenities such as shower, kitchen, and bedroom/sleeping quarters. Per Diem Per Diem allowance is a daily payment instead of reimbursement for actual lodging and meal expenses. It is separate from transportation and other miscellaneous expenses. Residence The Residence of a Traveler is the location, or within 50 miles thereof, where the Traveler maintains the primary dwelling. If a Traveler maintains multiple residences, the commissioner of the agency shall designate the residence that bears the most logical relationship to the Traveler's Duty Station as the Traveler's primary residence. Factors to be considered in determining the primary residence include: the time ordinarily spent performing duties at each location; the degree of business activity at each location; the relative amount of state wages earned at each location. Agencies may also contact the Division of Finance for assistance. Ticket Class Lowest ticket class on a regularly scheduled airplane, ship, or train that is the most direct route to accomplish the business purpose of the travel. Travel Planners Individuals within each agency that support Travelers by making travel arrangements, explaining policies, ensuring travel is approved prior to purchase, and ensuring reimbursement occurs timely after travel is complete. Traveler Throughout these policies, Traveler usually means a state official or a person employed by a state agency. At times, an agency may require board or commission members, volunteers, wards of the state, or other nonemployees to travel on state business. The agency must generally apply the same travel policies for nonemployees, except when travel reimbursement terms under a professional service contract differ as discussed in AAM 60.200. Alaska Administrative Manual — Accounting Travel 60.4 Page 56 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Travel Authorization A form approved by the Department of Administration used to document pre -travel approval and final travel related expenses. Travel Expenses Transportation expenses consist of commercial carrier fares, vehicle mileage allowances, taxi fares, bus fares, and other essential transportation expenses while on official state business. The Per Diem consists of two parts, meals and incidental expenses, and lodging. Other expenses consist of charges for business telephone calls, internet, parking fees, Emergency purchases of supplies, and other charges necessary to conduct official business. Travel Status Travelers shall be considered in Travel Status from the time an authorized trip begins until it ends. An "authorized trip" is a trip approved in accordance with administrative manual guidelines and where a Traveler travels outside the boundaries of the Duty Station. An authorized trip begins when a Traveler is leaving the Duty Station and: • A Traveler leaves the normal work location during normal work hours; or • A Traveler leaves the residence outside normal work hours. An authorized trip ends when: A Traveler returns to the normal work location during normal work hours; or A Traveler returns to the residence if the trip ends outside normal work hours; or A Traveler accepts voluntary denied boarding compensation. Refer to AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience. Refer to: h":Hdoa.alaska.gov/dop//ppdb/SOP/ChO8TravelasTimeWorked/traveltim eworkSOPrevl .pdf for policies on compensation for travel as time worked. Travel Status is either short-term or long-term and Per Diem allowances vary according to status. The determination of short-term or long-term is based upon the duration and type of lodging facility provided to the employee. See AAM 60.240 for further guidance. A brief return of the Alaska Administrative Manual — Accounting Travel 60.5 Page 57 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. employee to their Duty Station for business or personal convenience does not disrupt the long-term status of the trip. A Traveler is not in Travel Status for local travel or day trips. The following are some examples of Travelers who would not be considered in Travel Status under the local travel or day trip provision: A state trooper while on patrol in his/her assigned territory. A safety inspector whose normal duties include driving from his/her normal Duty Station to a construction site for purposes of conducting an inspection. A health inspector whose normal duties include driving from his/her normal Duty Station to various communities to inspect facilities. A mileage reimbursement form or suitable documentation must be used to reimburse transportation costs when the Traveler has met Travel Status by performing official state business duties outside their defined Duty Station. AAM 60.030 E -Travel (10-19) j The Department of Administration has established E -Travel as the managed travel program serving the State of Alaska Executive Branch, including employees, members of boards and commissions, inmates, witnesses, and other individuals that travel on official State business. E -Travel is comprised of: • Travel policies contained in AAM 60. • E -Travel Online, which is the online booking tool configured for State of Alaska travel policies used for researching and purchasing travel. • Travel management contractor. • Other contracts with vendors in the travel industry including airlines, hotels, and rental car agencies. • E -Travel Management Team. • Travel Coordinators, Travel Administrators, and Travel Planners within each agency. • Employees and others traveling on official State business. Travel Management Contract All travel paid by a State of Alaska Executive Branch agency must use the travel management contractor unless it is listed as optional under the service standards for performance on the Division of Finance travel web site, or a waiver has been granted by the Department of Administration. Alaska Administrative Manual — Accounting Travel 60.6 Page 58 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. All contracted travel personnel are required to sign and adhere to a confidentiality agreement. The confidentiality agreement prohibits contracted personnel from discussing state travel arrangements with anyone that does not have a valid State of Alaska -related business need to know. The agreement includes a liquidated damage clause for breach of confidentiality. Traveler Profile An electronic Traveler profile is required for booking travel. As a general rule, employees who will travel as part of their jobs should have individual Traveler profiles. The state information in these profiles is maintained by Travel Administrators. Optional information such as mileage number or seat preference may be entered by the Traveler. Traveler profile instructions are available on the Division of Finance travel web site. Aeencv Travel Policies Within the confines of this section, agencies may establish more specific, but not more restrictive travel policies. Travel Purchase Process Travel may be purchased using E -Travel Online or by calling the travel management contractor for agent assist services. Travel Planners should confirm the details of the itinerary before purchasing. After purchase, the agency is responsible for the carrier's change fee and any additional service fees to cancel and reissue the ticket. The Traveler is personally responsible for the change fee when the change is for personal convenience. Travel purchases must include the name of the approving official authorizing the purchase. Fare Increases Fares may increase before purchase. The state agency pays the increased fare unless it is a travel management contractor delay, in which case the contractor will absorb the fare increase. Refunds Agencies may request a refund for a refundable ticket at any time by replying to the final itinerary asking the contractor to refund the ticket. Any unused refundable ticket will be refunded 30 days after the return date on the ticket by the travel management contractor and the state agency will be notified. Alaska Administrative Manual - Accounting Travel 60.7 Page 59 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. AAM 60.040 Travel Approvals (08-20) Pre -trip Approvals All travel shall be approved in advance. Travel included on an agency's commissioner approved travel plan for the fiscal year submitted on the designated template meets the pre -trip approval requirement. Requests for travel approval not included on the commissioner approved travel plan shall be in writing and must document essentials of the travel including purpose, destination, departure and return dates, a total not -to -exceed amount, and whether a personal deviation is requested, with any related leave requests. Other aspects necessary for planning travel include whether a rental car, travel advance, or reimbursement of actual lodging costs are requested by the Traveler. Approval of financial coding for the trip may be required in advance at the agency's discretion. The approval required depends on the location of the travel: • Travel within Alaska - Prior approval is required by the agency and the department's commissioner or designee. • Travel to the Contiguous United States, Hawaii, British Columbia, and Yukon Territory - Prior approval is required by the agency, by the department's commissioner or designee, and by the Governor's Office. • Travel Outside the United States - Prior approval is required by the agency, the department's commissioner or designee, and the Governor's Office. Post -travel Expense Approvals Following completion of travel, actual travel expenses must be documented for approval in the Travel Authorization Form. General Travel Approval Policies • All state travel shall be work-related and essential for state business. • Agencies may document pre -approval for certain types of travel that does not fit the specific trip -by -trip approval process. • Personal travel plans of the Traveler shall not influence the approval of state -funded travel. Refer to AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience. • Travel Status should be confined to the minimum amount of time required to conduct the business of the state. As a rule, a Traveler may travel the day prior if the only available scheduled flights depart prior to 7:00 a.m. and a Traveler may stay an extra night if the only available scheduled flights arrive after 10:00 p.m. Alaska Administrative Manual — Accounting Travel 60.8 Page 60 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Supervisors may approve exceptions to these travel times when circumstances justify. When the required travel period exceeds 15 consecutive days, division directors may authorize employees to return home on days off at state expense. Such trips shall not curtail productive work time, and shall be limited to no more than one per month. Authorized costs for such trips are limited to the amount of avoided Per Diem and rental car expense. Whenever a Traveler and the state opt to share the cost of business travel, the agreement will be documented in advance, including the duration of state business within the travel period. For bargaining unit members, such agreements require the concurrence of the union and must be authorized by the Division of Labor Relations. AAM 60.050 Travel Purchase Policies (10-15) Alaska Statute 39.20.140(b) requires that the state pay no more than "the lowest ticket class fare for the most direct route" unless specific exemptions are met: • lowest ticket class accommodation is not available; • waiting for lowest ticket class accommodation would cause a delay harmful to the state; or • Department of Administration finds that travel by lowest ticket class accommodation is not in the best interest of the state, and authorizes other accommodation. First or business class is allowed if it is offered to the Traveler on a complimentary basis because of frequent flyer status and upgraded by the airline involved, except when acting as an escort. The statutes require purchasing the best fare for the most direct route that meets the state's business needs. This requirement also applies to contractors traveling on behalf of the state, regardless of whether the state is paying the travel expenses directly or reimbursing the contractor. The best fare does not require the purchase of nonrefundable tickets; agencies should make this business decision based on the nature of the travel. Federally funded or reimbursed Travelers are required by 49 U.S.C. 40118, commonly referred to as the "Fly America Act," to use U.S. flag air carrier service for all air travel. However, an exception to this requirement is transportation provided under a bilateral or multilateral air transportation agreement to which the United States government and the government of a foreign country are parties, and which the Department of Transportation has determined meets the requirements of the Fly America Act. Alaska Administrative Manual — Accounting Travel 60.9 Page 61 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. These agreements are called "Open Skies" agreements. Any international travel being reimbursed by the federal government should be booked accordingly. Failure to follow these regulations can affect travel reimbursement by the federal government. Travelers and approvers are required to document reasons for declining savings where the lowest available airfare is not purchased. Variances from State of Alaska travel policy may be reported to the agency for analysis. Electronic ticketing is the method preferred by the state. Paper tickets will be issued only when necessary. Travel planners must confirm the name on the Traveler's government - issued ID before an airline ticket is issued using a generic profile. The airline ticket must be issued in the name on the government -issued ID. All air and ferry travel must be ticketed using E -Travel except as noted in the service standards. Travelers are generally required to use State of Alaska contracted / preferred travel providers to ensure we obtain the best fares, rates, and insurance coverage. The Department of Administration, Division of General Services has negotiated travel contracts, some of which are mandatory. All contracts are listed in the Contract Award Manual, and terms, including allowable exclusions, should be reviewed and understood before travel is purchased. State contract airfares are not available for travel by consultants and contractors, even if their travel is reimbursed by the state. If an airline lowers a fare and a state -purchased ticket is reissued to a lower fare, the difference in fare belongs to the state. Airlines sometimes issue a nonrefundable electronic discount code credit (e -certificate) in lieu of refunding the form of payment used to purchase the original ticket. This e -certificate belongs to the state. Travelers are not allowed to use these e - certificates for personal travel, even if deposited in their personal account by the airline. The e -certificate number must be given to the Traveler's agency to be used for future state travel. Excess costs, circuitous routes, delays, or luxury accommodations unnecessary or unjustified in the performance of official state business travel are not acceptable. The Traveler will not be reimbursed for any additional costs that result from unauthorized travel arrangements. Alaska Administrative Manual — Accounting Travel 60.10 Page 62 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. AAM 60.060 Payment Methods for Transportation and Expenses (10-19) The State of Alaska uses two primary methods to purchase transportation for individuals traveling on official state business: 1. One Card Alaska Corporate Charge Card (Card) -- Agencies shall issue corporate charge cards to employees who travel. Corporate charge cards include One Cards and Managed Spend (declining balance) Cards. Employees with Cards are required to use them for purchases when the state pays actual costs, as in the case of transportation and actual lodging expenses. 2. Central Travel System (CTS) Accounts - The State of Alaska has established CTSs, which are used to purchase airfares and pay for rental cars for Travelers without Cards. CTSs are ghost accounts for which plastic cards are not issued. There may be occasions when neither the Card nor the CTS can be used to purchase transportation. In these cases, it should be purchased using EFT or a state warrant. Alaska Marine Hiahwav Transportation on state ferries may be authorized when in the best interest of the state. All ferry transportation will be paid by the employee using their Card, or by the agency through use of the CTS or an interdepartmental billing. Staterooms may be paid in advance utilizing the Card only if the appropriate authorization has been obtained in advance. Meals are to be paid directly by the Traveler. The Traveler may be eligible for reimbursement of lodging expenses and/or M&IE in accordance with AAM 60.240 and AAM 60.250. LodginE Frequent Travelers should use their Card to pay for lodging. When the Card is not available, agencies may choose to use direct billing as the method of payment. Meals and Incidental Exnenses For meals and discretionary tips, the Traveler receives a meals and incidental expense allowance as described in AAM 60.250. Personal expenses for meals, phone calls, movie rental, and entertainment must not be commingled with purchases for lodging expenses on the state Card. Alaska Administrative Manual — Accounting Travel 60.11 Page 63 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. AAM 60.065 Taxes Related to Travel (01-11) The travel policies of the state are generally intended to be in compliance with current IRS regulations as an accountable plan. See AAM 320 for tax implications related to state travel reimbursement policies. Travel purchases are expenditures of the state and are generally tax- exempt under local Alaska tax ordinances when purchased with the Card or other means of direct payment by the state. The state is subject to the taxes of other states or localities outside Alaska, and many federal fees and taxes. State employees are ultimately responsible for making sure state or local sales taxes are not charged if using a state charge card to purchase services or products in Alaska. Vendors should not be held responsible when Travelers fail to identify themselves as state employees, and some judgment based on cost/benefit criteria should be applied when determining when to call the vendor for credits/refunds for small amounts of taxes on state purchases after the fact. State agencies should reflect any action taken to retrieve taxes on the Travel Authorization. Taxes resulting from purchasing with the Traveler's personal form of payment are the responsibility of the Traveler unless state payment methods were not available to the Traveler. Lodain� Hotel charges paid directly by the state are generally exempt from local taxes within Alaska. State exemption from hotel taxes does not extend to lodging while staying at a hotel during a personal deviation. It is a Traveler's responsibility to review the hotel bill prior to signing and ask that taxes, if any, be removed. If the hotel does not remove the taxes immediately, report this issue to the agency Travel Coordinator. This policy does not apply to lodging purchased by employees who are reimbursed a Per Diem allowance for lodging per the terms of their collective bargaining agreement. This lodging is a purchase of the employee, not a direct state purchase, and is therefore subject to hotel and sales tax under local ordinances. Meals and Incidental Exnenses The actual costs for meals and other out-of-pocket expenses, as described in AAM 60.250, are purchases of the Traveler, and are therefore taxable Alaska Administrative Manual — Accounting Travel 60.12 Page 64 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. transactions under local tax ordinances. The Card should not be used for meals and incidental expenses to ensure proper tax treatment. Ground Transportation The state does not pay taxes on ground transportation within Alaska, but is responsible to pay other states' taxes and fees. Travelers must identify themselves as state employees when presenting a state form of payment for tax exemption within Alaska. The Traveler should circle the fare amount and write that amount on the total charge line of the receipt. Tips should not be included with the fare for state payment. Once the taxes are included they cannot be removed due to local city, borough, or municipality regulations. It is the Traveler's responsibility to pay any taxes not removed prior to issuance of receipt. AAM 60.070 Travel Advances (06-18) Travel advances are limited to payments made prior to travel commencing, and are generally calculated at 80% of estimated meals and incidental expenses. Agencies may authorize higher advances when circumstances warrant. Agencies may choose to pay travel advances using either EDI, or through use of the Card at an ATM. All travel advances require employee notification that any monies owed the State of Alaska by the Traveler may be deducted from the employee's paycheck. The Travel Advance Authorization form, available on the Division of Finance web site, needs to be signed only once by a Traveler for recovering all subsequent advances through payroll deductions. These forms should be kept on file by travel planners. A Traveler shall not receive an additional travel advance until the previous travel advance and trip has been reconciled and closed out. A Traveler shall not receive travel advances for same day travel. These payments are taxable and must be paid through payroll. Agencies may make exceptions to policies in this section when circumstances justify. AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience (01-21) Any interruption or deviation from the most direct and efficient means of travel for Traveler convenience requires prior approval at the agency level by the appropriate supervisor or designee. Such approvals must weigh the Alaska Administrative Manual -- Accounting Travel 60.13 Page 65 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. interests of the state as Travelers are not automatically entitled to deviations for personal convenience. Any additional time or expense resulting from an interruption or deviation for Traveler convenience shall be borne solely by the Traveler. Travelers are responsible for researching and purchasing air, car, and lodging for the personal portion of the travel on their own time. This is not a work function, and travel planners cannot research or purchase travel outside of the minimum itinerary required to conduct state business. The business itinerary must be documented in a state -authorized fare quote (see 3 below) when the travel is approved. Travelers should be aware that personal deviations from the state - authorized itinerary may negate workers' compensation coverage. The greater the personal deviation, the more likely the departure from the course of employment, and thereby workers' compensation coverage. When a Traveler interrupts business travel for personal reasons, the following apply: Per Diem, travel allowances, and reimbursements are calculated for the minimum itinerary that is required to conduct state business without regard for the actual itinerary that includes the deviation for personal convenience. For example, a Traveler (Anchorage Duty Station) is traveling on state business (in Seattle) and the business is concluded at noon on Wednesday. For personal reasons the Traveler will not return to the Duty Station until the following Monday. In this example, the Traveler's entitlement to Per Diem, mileage, and other travel reimbursements ends an hour after the first flight that would get the Traveler home Wednesday evening is scheduled to land. This entitlement is not increased if the Wednesday evening flight does not operate as scheduled, as Travelers relinquish their right to reimbursement for flight delays once they choose to deviate from the business itinerary. See Personal Travel FAQs for other examples. 2. A Traveler requesting approved personal air travel deviation for an alternate routing, personal discount coupons to purchase companion travel, or travel that increases airfare, will make the transportation arrangements for the entire trip on their own time. These arrangements will be purchased by the Traveler using a personal form of payment instead of a state form of payment. Personal travel segments cannot be purchased at state -contracted rates. Exception: If the only deviation is an extension of dates on either end of the state - authorized dates, agencies may opt to pay for the combined airfare when purchased if the personal portion can be recovered from the Traveler's reimbursement after travel is complete. 3. A state -authorized fare quote must be obtained before personal travel is booked or at the time the travel is approved, whichever is later, for Alaska Administrative Manual — Accounting Travel 60.14 Page 66 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. a price comparison to determine Traveler reimbursement. To ensure contract rates are applied the fare quote (air, car, and hotel) must be obtained in E -Travel Online by capturing the business itinerary and fare on the purchase page (no fee), or by calling the contracted travel agency (fee applies). After travel is complete, the Traveler must present a copy of the ticket receipt or itinerary showing payment and the state -authorized fare quote to obtain reimbursement. The state will reimburse the lesser amount of either the deviated ticket purchased or the state -authorized fare quote. If the Traveler cannot produce a state -authorized fare quote as instructed above, the Traveler will be eligible for a maximum allowance of $200 for a round-trip or multi -destination itinerary or $100 for a one-way itinerary, plus the authorized car and hotel expenses. The state will reimburse the lesser amount of either the deviated ticket purchased or the predetermined allowance. 4. Rental cars obtained for official state business are authorized only for the minimum business itinerary. The rental period may not extend to the personal travel. See AAM 60.140 for clarification on personal travel involving privately owned vehicles. 5. Any additional time that reduces the Traveler's work week related to indirect travel will be charged to annual leave, personal leave, or leave without pay. In the example 1 above, the employee's leave status would begin Thursday morning when the Traveler could have returned to work based on the scheduled flights for the minimum business itinerary. Leave in conjunction with business travel must be documented in prior approval and supervisors are responsible for ensuring that leave is reported appropriately for Travelers they supervise. 6. Per Diem is allowed when a Traveler is granted leave due to illness. However, the Per Diem allowance shall not be authorized for a period of illness exceeding three calendar days in any one period of absence. Per Diem is not authorized if the Traveler is hospitalized or otherwise has no actual and necessary business expenses requiring reimbursement. Agencies must ensure that employees combining business and personal travel are well-informed and cautioned that airfares may result in a liability to the employee, should the reason for the business travel be cancelled. Employees leaving on vacation in conjunction with the business event will become responsible for all costs should the business event be cancelled. Employees opting not to travel if the business event is cancelled will be responsible for the cost of travel that the state cannot recover that was attributable to the personal portion of the airfare. The employee may be reimbursed, at the agency's option, for the business portion of unused tickets. The Alaska Administrative Manual — Accounting Travel 60.15 Page 67 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. business portion of unused tickets paid to employees must be monitored by the agency as state assets until they are used or expire. Employees leaving the agency prior to the expiration of such a ticket are required to return the state payment for any business portion that is still available for use by the employee. 8. Voluntary denied boarding compensation where the Traveler voluntarily vacates his/her seat and takes a later flight may be retained by a Traveler (viewed as an insignificant personal travel credit under ethics rules). A Traveler cannot volunteer for denied boarding on an outbound flight unless the Traveler has previously approved personal travel for the beginning of the travel period. Nor may a Traveler volunteer for denied boarding if it may cause a delay in return to work. By accepting a voluntary bump on the return portion, the Traveler puts himself on personal travel rather than state business. Travel Status ends, no further Per Diem is allowed, and all state insurance coverage ceases for the duration of the trip. The Traveler is responsible for any additional travel expenses caused by the voluntary action. AAM 60.090 Unused Transportation and Accommodations (07-14) When Travelers' plans change, Travelers shall release air, car, and hotel reservations within the required time limits. Travelers may contact vendors directly or contact the travel management contractor to cancel reservations. The state shall not reimburse Travelers for charges incurred as a result of failure to release reservations. Travelers shall submit any unused portion of air or ferry tickets with the Travel Authorization. Travel planners may forward unused tickets to the travel management contractor to process refunds or the agency may retain them for reissuing later. Any unused refundable ticket will be automatically refunded 30 days after the return date on the ticket by the travel management contactor and the state agency will be notified. AAM 60.100 Airline Delays, Rescheduling, and Overheading (01.07) When an airline assumes the cost of a Traveler's lodging and/or meals due to airline delays or overheading, the Traveler shall be paid a Per Diem allowance up to the originally scheduled arrival time. When the airline does not assume the cost of a Traveler's lodging and/or meals, the Traveler shall be paid the Per Diem allowance that applies for the actual trip. Involuntary denied boarding compensation is payable to the state, not to the individual employee. If a Traveler is performing official travel and a carrier denies a confirmed reserved seat on a plane, the Traveler must Alaska Administrative Manual — Accounting Travel 60.16 Page 68 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. submit to the agency any payment received for liquidated damages. The Traveler must ensure the carrier shows the "State of Alaska" as payee on the compensation. Any such compensation must be submitted with the Travel Authorization. AAM 60.110 Excess Baggage (04-05) The state will only pay for excess personal and state baggage necessary to carry out official state business. Such baggage shall be transported by the most economical method (checked as excess baggage, shipped via airfreight, etc.). AAM 60.120 Rental Cars (10-15) When necessary, the rental of a car may be authorized for Travelers in Travel Status and should be included as part of the request for Travel Authorization approval. The cost and intended use of the car must be considered in determining the size and type of car to rent. As a rule, a mid-size or less car should be rented, however a larger than mid-size car may be allowed when several Travelers are traveling together or circumstances require the use of a larger car. Such situations must also be documented on the completed Travel Authorization. All car rentals must be reserved using E -Travel. Travelers are generally not authorized to upgrade their rental cars at the airport. If a car upgrade is required for business or safety reasons, the reason must be documented on the Travel Authorization when it is finalized. Travelers are responsible for refueling rental cars prior to returning them to the rental car companies. If the rental car company refuels the vehicle, a justifiable business purpose must be provided for incurring the additional cost. By most state laws, auto liability insurance (covering third party damage or injury claims) is provided by the car -rental company as owner of the vehicle. Excess auto liability coverage is provided through Risk Management for authorized business travel. All liability insurance offered by car rental companies must be declined by Travelers. Collision or Physical Damage Waiver for any damage to a rental car (collision, comprehensive coverage, and related loss of use claims) is often offered by the car rental company at the time of hire and must be declined by Travelers when hiring from a state contracted rental car company. Risk Management will respond to any physical damage claims to rental cars while used on state business related travel. If an agency elects not to use a contracted rental car company where available, the agency accepts Alaska Administrative Manual -- Accounting Travel 60.17 Page 69 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. responsibility to cover any physical damage to the rental car should it occur. Rental cars may be driven on state business only, and Risk Management self-insurance coverage applies only where the car is used on state business. State business includes usual travel related activity (restaurants, hotels, etc.), but does not extend to any personal deviations for individual Traveler convenience. Refer to AAM 60.080 Interruption or Deviation of Travel for Traveler Convenience. If there is damage to any rental car: Travelers are cautioned to never accept responsibility or admit liability. If the lessor requests information or payment, advise the lessor to contact the Department of Administration, Division of Risk Management. If there is personal injury or an accident, telephone the Division of Risk Management as soon as possible. During the deviated portion of a trip, or when family members are accompanying a Traveler, rental vehicles must be purchased by the Traveler. The Traveler must possess the appropriate insurance coverage that meets State of Alaska laws or purchase the insurance coverage from the rental car company. Reimbursement of rental cars may be received at the lesser of the state's daily contract rate or actual rental rate upon agency approval and based on a business need. All invoices, contracts, and receipts must accompany the Travel Authorization expense report. See AAM 60.350 for use of rental cars connected with an employee move. AAM 60.130 Airport Shuttle, Courtesy Van, and Taxi Service (10-15) When a Traveler in Travel Status requires transportation either to or from an airport or ferry terminal, an airport shuttle, courtesy van, taxi or limousine service is allowed. When departing/returning on state travel, if a Traveler uses a privately owned vehicle for transportation to or from an airport or ferry terminal, the Traveler is allowed mileage and up to seven days of parking reimbursement. Parking reimbursement for more than seven days must be included on the request for Travel Authorization and approved prior to travel. Additional days of parking may be reimbursed when state business related itinerary changes occurred during Travel Status that prevented pre -approval. Alaska Administrative Manual —Accounting Travel 60.18 Page 70 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. AAM 60.140 Privately Owned Vehicles (10-16) A Traveler may receive mileage reimbursement for using a privately owned vehicle, such as auto, snowmobile, motorcycle, or boat when it is in the best interest of the state and their official state business duties are outside their defined Duty Station. The approving official shall be responsible for substantiating that use of a privately owned vehicle is in the state's best interest. The Traveler shall receive a mileage reimbursement equal to the miles entered in the mileage form and the established rates published on the Division of Finance web site at: hq://doa.alaska.gov/dof/travel/resource/POV_Rate_Table.pdf. When a Traveler uses a privately owned vehicle, the amount of reimbursement shall be limited to what the lowest available commercial alternative would have cost. Per Diem, actual hotel expenses and meal allowances, or other travel reimbursements shall not exceed the amounts that would have been incurred had the Traveler used common carrier transportation. Only mileage incurred while engaged in official state business is reimbursable. Mileage incurred for commuting between an employee's residence and normal work location is not reimbursable. If approval under section 60.020 is obtained, mileage incurred for commuting to/from a temporary worksite is reimbursable to the extent that it exceeds the distance from the employee's residence to the normal work location. Any additional regularly scheduled work time away from the Duty Station required as a result of using a privately owned vehicle for personal convenience will be charged to annual leave, personal leave, or leave without pay. When two or more Travelers that are traveling in the same direction, and it is possible to share a privately owned vehicle or airplane, the state will reimburse the total mileage only once (AS 39.20.130). AAM 60.150 Privately Owned Aircraft (11-22) When a state employee who is a qualified pilot rents an aircraft or uses a privately owned aircraft for state business, the following items must be filed with the Department of Administration/Risk Management if the employee does not have an insurance policy meeting the required limits. Otherwise, the items must be filed with the agency Administrative Officer before using the aircraft: • A copy of a valid pilot's license. • A copy of current medical certification. Alaska Administrative Manual — Accounting Travel 60.19 Page 71 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. • Proof of aircraft liability insurance with limits not less than $1,000,000 combined single limit for bodily injury and property damage per occurrence/annual aggregate. It is the responsibility of each agency to ensure these documents are on file before authorizing or reimbursing a Traveler for the use of a privately owned aircraft. No passengers are permitted to accompany a pilot except other state employees who are also traveling on state business to the same destination. For Travelers who do not have the required $1,000,000 aircraft liability insurance coverage, the Division of Risk Management has an insurance policy to provide the required coverage for Travelers who meet certain minimum pilot qualifications. This coverage is a separate aircraft liability policy for $1,000,000 combined single limit liability, for bodily injury and property and may be purchased on a per -flight basis with individual coupons. In the event the aircraft owner has liability insurance, the state policy applies as excess insurance over any other valid and collectible policies. To obtain individual trip coupons for this per -flight, aircraft liability insurance, contact Risk Management at: Division of Risk Management Department of Administration P.O. Box 110218 Juneau, AK 99811-0218 Phone (907) 465-2180 Fax (907) 465-3690 The cost is $50 per aircraft per round trip flight. The first order for coupons must be accompanied by a copy of the Pilot Qualification Certification (note minimum flight hour requirements on this form), a copy of the pilot's license, and current medical certification. The coupons may be purchased by the Traveler pilot or through a request to transfer the funds via an interdepartmental billing (Journal Entry). The original completed coupon shall be attached to the Travel Authorization. A copy of the coupon must be returned to Risk Management to comply with insurance policy requirements. The reimbursement rate for privately owned aircraft is the lesser of the state -published rate on the Division of Finance website at: ho://doa.alaska.gov/dof/traveUresource/POV Rate Table.pdf or the common carrier rate to the same destination. Bargaining unit agreements may supersede this rate. Alaska Administrative Manual — Accounting Travel 60.20 Page 72 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. AAM 60.160 Charters and Group Transportation (01-10) When it is necessary to hire a boat, aircraft, or other special conveyance, an explanation stating the facts constituting the necessity must be included with the Travel Authorization. When two or more Travelers travel as a group or with a group, the names and business relationship of each member of the group shall be included with the Travel Authorization of each Traveler. All charters must be handled in compliance with the policies and provisions of AS 36.30, purchasing regulations 2 AAC 12, and the agency's delegation of purchasing authority. E -Travel may be used for chartering transportation. AAM 60.170 Alternatives to Travel (04-05) Agencies are to develop and implement alternatives to travel, as well as less expensive means of travel. These methods should include, but are not limited to: • Teleconferencing and video conferencing. • Video recordings and published reports. • Reduced frequency of regularly scheduled out of town meetings. • Restrictions on the number of staff traveling to the same destination. • Coordinating between agencies for joint travel arrangements when more than one agency is involved. If an agency determines that a seminar, workshop, or training program is essential to staff development for five or more employees, the agency will investigate the option of bringing the trainer on-site instead of authorizing employees to travel to an off-site location. The agency will document the comparative cost of an on-site session and retain such documentation on file with the agency's travel records. The agency must also explore the practicality of fulfilling the desired staff development goals through use of video teleconferencing or web -based conferencing where these options may be more cost-effective. AAM 60.180 Boards and Commissions (01-07) Except for those board and commission members specifically covered in statute, each state board and commission member is entitled to the same reimbursement for lodging and M&IE allowances as provided to state officials and employees in this section of the administrative manual. Alaska Administrative Manual — Accounting Travel 60.21 Page 73 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. When the meeting or other business takes place in the vicinity of the member's residences (see definition at AAM 60.020), members are not in Travel Status and are not entitled to reimbursement or a Per Diem for lodging. However, the commissioner of the department with oversight authority of the board may authorize reimbursement of such lodging expenses when deemed necessary and in the best interests of the state. For example, it might be authorized if the travel home would present a hardship due to the age and health of the board member. When such payments are authorized, approval must be noted on the Travel Authorization. A board or commission member, who is not a state employee, attending a board or commission meeting is entitled to a prorated M&IE if meals are not provided. To be eligible for each meal period allowance requires the member to be in attendance for at least three consecutive hours within that meal period as defined in AAM 60.250. See AAM 320 for when this allowance may be taxable to board and commission members. State employees serving as board or commission members as part of their official duties are not entitled to an M&IE allowance or reimbursement for lodging expenses when the board or commission meeting is in the vicinity of their residence and/or Duty Station. (AS 39.20.180, AS 39.20.1851 AAM 60.190 Health and Safety of Travelers (01-10) The health and safety of Travelers is a top priority in the conduct of state travel related activities. It is advantageous to the state for agencies to establish and alter travel plans and itineraries with consideration of hazardous weather and other situations that could threaten the health and safety of state personnel. When this occurs, Travelers should note the reason for any additional expense on the Travel Authorization. Travelers with Physical and Medical Conditions The impact of the medical conditions of Travelers on state travel should be considered on a case-by-case basis. For Travelers weighing over 300 pounds, the state can pay for two seats in coach class or one first class ticket, whichever costs less. Similar accommodations can be made for Travelers weighing less than 300 pounds if the airline requires the purchase of a second seat. Compliance with the Americans with Disabilities Act (ADA) is mandatory. Each agency has the authority to provide reasonable accommodations during state travel for Travelers with disabilities. Decisions regarding specific situations not addressed by policy shall be made and documented by the agency, conferring with the Division of Personnel and Labor Relations as necessary. Alaska Administrative Manual — Accounting Travel 60.22 Page 74 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. All state personnel are to be afforded equal opportunity to perform travel for official state business even if the travel costs for disabled Travelers will exceed what would normally be most economical to the state. For example: When a Traveler uses a wheelchair and it is necessary to pay more for an airline ticket so the Traveler can fly on a larger airplane that can accommodate the wheelchair. When a Traveler has hearing or vision impairments and there is a cost of providing auxiliary aids and services to enable the Traveler to successfully accomplish the purpose of the travel. All special needs of Travelers should be documented in their travel profile. The extra travel costs required to comply with the ADA shall be documented and reviewed by the Division of Personnel and Labor Relations. ADA supporting documentation should remain confidential with no details on the Travel Authorization beyond a statement added indicating the agency file location. AAM 60.200 Travel Related to Contracts (10-08) Agencies are encouraged to require the policies of AAM 60 in the terms of their professional service contracts which include travel. When the state reimburses a contractor for travel under these policies, the travel account codes in the financial system may be used because the travel reimbursements are excludable under the rules governing IRS accountable plan. When contract terms for travel reimbursement differ from the policies of AAM 60, or the contractor does not account to the state for travel costs, the services account codes must be used to ensure that travel reimbursements are reported as taxable income to the contractor. AAM 60.210 Traveler Reimbursement (11-22) All travel expenses incurred by State of Alaska employees will be reimbursed based upon collective bargaining contracts, Alaska Statutes, and this section of the Alaska Administrative Manual. Failure to follow State of Alaska travel policies may result in non -reimbursement or delayed reimbursement. If, in an emergency situation, it is necessary for a Traveler to deviate from travel policy (examples: booking outside of E -Travel or First Class fares) then a memo should accompany the travel packet explaining the circumstance. Alaska Administrative Manual — Accounting Travel 60.23 Page 75 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Within five business days after travel is complete, the Traveler, or someone acting on behalf of the Traveler, is required to submit a completed travel packet including final trip receipts, evidence of pre - approval, and trip details to the financial entity responsible for processing final reimbursements. If the final amount to be reimbursed is $.49 or less, no reimbursement will be processed. If the final amount to be reimbursed is $.50 or more, the amount to be paid will be rounded up to $1.00. Any monies owed the state by the Traveler may be deducted from employee paychecks. Travelers can alternatively give a personal check or money order to the agency's fiscal office and a copy of the payment must accompany the travel packet. If the Traveler is due an additional amount, final payment shall be certified within fifteen business days from when the financial entity responsible for processing final reimbursements receives a properly completed Travel Authorization expense report or final travel packet. Travel packets containing errors may delay travel reimbursements. Travel reimbursements are not subject to penalty pay or short pay provisions. Depending on how the reimbursment is processed by the responsible financial entity, the Traveler will receive their travel reimbursement via their paycheck or direct deposit unless the Traveler chooses non -electronic payment, in which case a warrant will be mailed to the Traveler's personal address on file in the statewide financial system. AAM 60.220 Travel Expenses — Required Receipts and Documentation (10-15) The following shall be attached to the Travel Authorization expense report when submitted for final payment: • Final itinerary. • Itemized Commercial Lodging Facility receipts (short-term Per Diem). • Receipts for expenses exceeding $50. • ATM receipt for any cash advances on state charge cards. • Rental car agreement. Though receipts for expenses of $50 or less are not required, total reimbursement for which receipts are not available shall not exceed a cumulative total of $75 per trip. Alaska Administrative Manual — Accounting Travel 60.24 Page 76 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Receipts are strongly encouraged. All expenses claimed are subject to review and reimbursement of unsupported expenses may be disallowed. Fraudulent claims will be subject to disciplinary action. The following travel -related expenses are not reimbursable: • Lost or stolen articles. • Alcoholic beverages. • Damage to personal cars, clothing, or other items. • Services to gain entry to a locked car. • Movies charged to hotel bills. • All expenses related to the personal negligence of the Traveler, such as fines, parking tickets and traffic citations. • Entertainment expenses. • Tips and gratuities. • Towing charges. • Expenses for children, spouses, and companions while in Travel Status. • Personal phone calls or faxes. The above list is not all-inclusive. AAM 60.230 Third Party Reimbursements (01-07) Occasionally a third party (outside entity) may agree to pay all or a part of a Traveler's travel expenses. In such cases, the Travel Authorization will indicate the third party's involvement in the trip. The Traveler is only entitled to reimbursement for travel expenses, Per Diem or other expense allowances, etc., in accordance with state policies and is to be paid by the state agency for which they are traveling and/or employed. Travelers may not accept honorariums as long as they are traveling for and representing the state. The third party should be instructed to reimburse the state directly for the travel expenses to reduce potential tax consequences to the Traveler. When this is not possible, any third party reimbursement made directly to the Traveler for travel expenses, Per Diem, and/or meal allowances shall be turned over to the Traveler's state agency for deposit into the state treasury. Payments by a third party for state agency travel expenses must be recorded appropriately in the state financial system. If the travel is material to the agency's travel budget and is part of the agency's regular duties or is connected with carrying out the purpose of the agency, the costs must be recorded as an expenditure with an offset recorded as a revenue. If the state incurs the expenditure and is reimbursed by the third party, the reimbursement is to be recorded as revenue. Alaska Administrative Manual — Accounting Travel 60.25 Page 77 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. However, if the travel is not directly related to the state agency's program, is not a recurring event, or is immaterial to the agency's travel budget, this transaction does not need to be recorded as an expenditure and a revenue of the state agency. If the state incurs the expenditure and is reimbursed by the third party, the reimbursement may be recorded as an abatement. If the third party pays directly for state expenses, such as purchasing the airline ticket for the Traveler, these expenses do not need to be recorded. However, any receipts obtained by the Traveler showing the cost of the airline ticket or lodging must be attached to the Travel Authorization expense report. Any time a third party is paying for a Traveler's travel expenses, the state agency must avoid the appearance of or the fact of any conflict of interest. The agency should also ensure the transaction does not violate the code of ethics and if there is any question, the Department of Law should be consulted on the matter. AAM 60.240 Lodging Types and Rates (05-16) Travelers are permitted actual costs or an allowance for lodging and an allowance for meal and incidental expenses (M&IE). Refer to AAM 60.250 for policies on M&IE. The combined costs for lodging and M&IE are referred to as the Per Diem allowance. Where applicable, travel provisions of collective bargaining agreements supersede AAM Per Diem allowance policies and rates. A Traveler is not entitled to a Lodging Allowance when provided lodging by the state or a third party with whom the state is conducting business. Travelers are not entitled to a Lodging Allowance when staying in their own residence(s). The term of a stay (short- or long-term), type of lodging facility, and location of overnight lodging determine applicable lodging types and rates. Agencies should take into consideration the length of stay in one location in determining the type of lodging accommodations. For current lodging rates, refer to the State of Alaska Per Diem Rates published on the Division of Finance web site at: httn://doa.alaska.L-ov/dof/traveUtrav acct.html. In- and Out -of -State. Short -Term Lod¢ina (Actuals or Allowance) Travelers on short-term Travel Status in or outside of Alaska are eligible for reimbursement of actual lodging expenses. Actual costs for short-term lodging are authorized for moderately priced commercial lodging. Each agency must ensure that lodging costs are reasonable and necessary and that government or other discount rates are used. Travelers must submit Alaska Administrative Manual -- Accounting Travel 60.26 Page 78 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. original or scanned itemized commercial lodging receipts with their Travel Authorization expense report. Actual lodging expenses that exceed $300 room rate per night, excluding taxes, must be approved in advance by commissioners or designee. All requests shall include justification that clearly demonstrates the lodging is a government rate and cannot be acquired for less than $300 per night. Quotes from a least three moderately priced hotels in the same vicinity should be included with the justification. Travelers on short-term Travel Status in- and out -of State are eligible for a daily noncommercial allowance: • When the Traveler is required to stay in a community or location where Commercial Lodging Facilities and state- or vendor - provided facilities are not available. • When the Traveler chooses noncommercial lodging in situations where Commercial Lodging Facilities are available. In -State, Long -Term Lodging (Allowance) Agencies should provide in-state long-term lodging accommodations when the assignment is expected to be longer than 30 days at any one location. • The long-term commercial Lodging Allowance rate is authorized when a Traveler stays in Commercial Lodging Facilities. • The long-term noncommercial Lodging Allowance rate is authorized when a Traveler is required to stay in a community or location where Commercial Lodging Facilities and state- or vendor -provided facilities are not available. These rates apply beginning the first day of Travel Status. Brief interruptions for business or personal convenience do not change the status from long-term. Out -of -State, Long -Term Lodging (55% of Federal Lodging Allowance) The long-term lodging rate outside Alaska is 55 percent of the federal Lodging Allowance. A link to the federal Per Diem rates is located on the Division of Finance web site at: httr)://doa.alaska.gov/dof/traveYtrav acct.html. Reauired ADnrovals for Short- and Long -Term Travel Assignments The short-term Lodging Allowance rate may not be used after a Traveler's 30th consecutive day in one location unless a continuation has been approved in advance by the director of the Division of Finance. Alaska Administrative Manual — Accounting Travel 60.27 Page 79 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. When in-state Travel Status is expected to extend beyond six consecutive months in one location or out-of-state travel is expected to be 30 days or longer, the Traveler's agency must receive advanced approvals for the assignment and for use of the long-term lodging rate from the agency's administrative services division and the director of the Division of Finance. The approvals are requested on the Long -Term Travel Assignment form which has specific information required for the approvals. Particularly, continued Travel Status that extends beyond a year and requires the requestor(s) to justify why it is in the state's best interest to pay Per Diem rather than move the Traveler to the project location. This form is published on the Division of Finance web site at: htti)://doa.alaska.gov/dof/forrns/resource/lonetenn.W See AAM 320 for a summary of tax implications related to state travel reimbursement policies. AAM 60.250 Meals and Incidental Expense Allowances (10-19) Meal and incidental expense (M&IE) allowances and prorated M&IE allowances are provided to the Traveler to cover the cost of meals and incidental expenses such as discretionary tips. Where applicable, travel provisions of collective bargaining agreements supersede AAM M&IE allowance policies and rates. There are two types of M&IE allowances, short-term and long- term/noncommercial. The appropriate M&IE allowance rate for a day is the rate established for the community in which the Traveler is required to obtain overnight lodging. On the day of return, a Traveler is entitled to the M&IE allowance rate applicable for the preceding day. When travel involves crossing the International Date Line, the M&IE allowance shall be calculated based on the total number of hours in flight. For current M&IE allowances, refer to the state Per Diem rates published on the Division of Finance web site at: httn://doa.alaska.sov/dof/travel/trav acct.html. A link to the federal Per Diem rates is located on the Division of Finance web site at: httn://doa.alaska.2ov/dof/travel/trav acct.html. Short -Term M&IE (Allowance Travelers on short-term Travel Status in Alaska are eligible for a daily state M&IE rate. Travelers on short-term Travel Status outside of Alaska, including travel to Hawaii and foreign destinations, are eligible for the daily federal M&IE rate for the location. Alaska Administrative Manual — Accounting Travel 60.28 Page 80 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. A Traveler is eligible for the short-term M&IE allowance rate in two circumstances: when a Traveler in short-term Travel Status is expected to incur expenses from dining at commercial establishments; and when a Traveler in long-term Travel Status will incur expenses from dining at commercial establishments because the Traveler is required to stay in a lodging facility that does not provide cooking facilities to its guests. Long-Term/Noncommercial M&IE (Allowance) Travelers on long-term Travel Status in Alaska are eligible for a daily state M&IE rate. Travelers on long-term Travel Status outside of Alaska, including travel to Hawaii and foreign destinations, are eligible for 55% of the daily federal M&lE rate for the location. A Traveler is eligible for a long-term/noncommercial M&IE allowance in two circumstances: when a Traveler in long-term Travel Status, is expected to prepare meals; and when a Traveler is in short-term Travel Status in a location where there are no commercial dining establishments. M&IE Rules for Snecific Situations Whenever a Traveler is in Travel Status and is entitled to reimbursement for lodging under both the short-term and long-term/noncommercial Per Diem rules, the Traveler is entitled to only the M&IE allowance that applies to the location where the Traveler is staying. Travelers are entitled to the entire incidentals portion of the rate for each day or partial day in Travel Status unless all meals are provided. If a Traveler maintains a dwelling at their destination and it is available to them, they will be entitled to only an M&IE allowance for normal workdays. An M&IE allowance for other than normal workdays is not allowed. If a Traveler is temporarily returned to the Traveler's Duty Station while on a long-term assignment and is continuing to receive a long-term lodging Per Diem, the Traveler is not entitled to any M&IE allowance while at the Duty Station. Prorated M&IE Allowances On the initial day of departure and final day of arrival, the Traveler receives 75% of the daily M&IE allowance for the travel destination. The prorated M&IE allowance is applied to both meals and incidental expenses. Alaska Administrative Manual - Accounting Travel 60.29 Page 81 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Travel Status Less Than 24 Hours, More Than 12 Hours Travelers who are in Travel Status less than 24 hours but more than 12 hours and who return to their residence and/or Duty Station rather than obtaining overnight lodging at their travel destination, are entitled to 75% of the daily M&IE allowance for the travel destination. Travelers who are normally scheduled to work more than 10 hours per day must be in Travel Status at least 2 hours more than their regular scheduled workday to be eligible for 75% of the daily M&IE allowance for the travel destination. See AAM 320 for details on taxability of such an allowance. Meals Provided to Travelers Occasionally, a Traveler is provided a meal while at a conference, training, seminar, etc., or as part of a lodging package such as at bed and breakfast inns (where the state is paying for actual lodging costs). It is the Travelers responsibility to accurately report consumed meals on the Travel Authorization expense report submitted for M&IE allowance. The signature of the Traveler certifies the facts on the Travel Authorization form and is sufficient to process the claim for payment. Excluding the initial day of departure and final day of arrival the M&IE allowance must be reduced by the consumed meals reported by the Traveler on the Travel Authorization form. The prorated meal rates are published on the Division of Finance web site at hqp://doa.aaska.gov/dof/traveUresource/rates.pdf. AAM 60.260 Contracting for Subsistence (07-05) The state may enter into agreements with restaurants, hotels, and lodging houses to furnish subsistence to a Traveler or groups of Travelers when in the best interest of the state (AS 36.30 . A contract for subsistence must comply with appropriate procurement regulations. Such agreements require the vendor to provide itemized invoices for services. Alaska Administrative Manual — Accounting Travel 60.30 Page 82 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. 1. P&P No. MUNICIPALITY OF ANCHORAGE 68-1 Page 1 of 12 PURPOSE To establish policies and procedures to approve travel requests, process travel activity, and pay travel expenses. 2. POLICY A. All Municipal travel must be approved and processed in accordance with this policy. The Municipality will not reimburse expenses incurred that violate this policy. B. Travelers should attempt to travel by the most economical method possible. C. Travel only when necessary to perform Municipal duties and to further Municipal objectives. Consider the use of video and/or teleconferences in lieu of travel. D. Travel approval is contingent upon available budget. If a budget increase is needed, it must be obtained before additional travel occurs. Travel approval depends upon such factors as organizational priorities and the nature and strength of justification. E. Travel forms are not required for travel resulting in no cost to the Municipality. F. Travel forms are not required for travel which results in only personal vehicle mileage reimbursements, MOA vehicle fuel costs, and/or parking costs. G. Travel forms are not required if all costs are paid in advance by another organization, but are required if another organization reimburses the Municipality. H. Organizations other than the Municipality may pay for/reimburse travel expenditures at rates other than those allowed by the Municipality. For example: Per diem may be $50/day if paid/reimbursed by an outside organization. I. If an employee voluntarily terminates employment before prearranged travel and the Municipality cannot recover the related travel costs, the employee must reimburse the Municipality for those costs. J. Fair Labor Standards Act (FLSA) regulations, 29 CFR 785.39 through 785.41 (Not applicable for exempt employees) Under the FLSA, travel time other than normal commute time during normal work hours (e.g., 8:00 a.m. to 5:00 p.m., for an employee who regularly works these hours) is compensable. Example # 1: If you take an 8:00 a.m. flight and your normal workday starts at 8:00 a.m., you won't be compensated for your drive to the airport or the security/check-in time before the flight because your drive is like your commute, you are free to engage in personal activities, and this time falls outside your normal work hours. You will be paid for the flight itself because it is during normal work hours. Page 83 of 109 Consideration And Discussion To Change The Travel Policy • OPERATING Effective Date: POLICY/PROCEDURE November 1, 2008 Subject: Supersedes No. Dated: 68-1 01/01/06 Travel Approval, Travel Expense Approved by: And Per Diem 1. P&P No. MUNICIPALITY OF ANCHORAGE 68-1 Page 1 of 12 PURPOSE To establish policies and procedures to approve travel requests, process travel activity, and pay travel expenses. 2. POLICY A. All Municipal travel must be approved and processed in accordance with this policy. The Municipality will not reimburse expenses incurred that violate this policy. B. Travelers should attempt to travel by the most economical method possible. C. Travel only when necessary to perform Municipal duties and to further Municipal objectives. Consider the use of video and/or teleconferences in lieu of travel. D. Travel approval is contingent upon available budget. If a budget increase is needed, it must be obtained before additional travel occurs. Travel approval depends upon such factors as organizational priorities and the nature and strength of justification. E. Travel forms are not required for travel resulting in no cost to the Municipality. F. Travel forms are not required for travel which results in only personal vehicle mileage reimbursements, MOA vehicle fuel costs, and/or parking costs. G. Travel forms are not required if all costs are paid in advance by another organization, but are required if another organization reimburses the Municipality. H. Organizations other than the Municipality may pay for/reimburse travel expenditures at rates other than those allowed by the Municipality. For example: Per diem may be $50/day if paid/reimbursed by an outside organization. I. If an employee voluntarily terminates employment before prearranged travel and the Municipality cannot recover the related travel costs, the employee must reimburse the Municipality for those costs. J. Fair Labor Standards Act (FLSA) regulations, 29 CFR 785.39 through 785.41 (Not applicable for exempt employees) Under the FLSA, travel time other than normal commute time during normal work hours (e.g., 8:00 a.m. to 5:00 p.m., for an employee who regularly works these hours) is compensable. Example # 1: If you take an 8:00 a.m. flight and your normal workday starts at 8:00 a.m., you won't be compensated for your drive to the airport or the security/check-in time before the flight because your drive is like your commute, you are free to engage in personal activities, and this time falls outside your normal work hours. You will be paid for the flight itself because it is during normal work hours. Page 83 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Not a Normal Work Day Employee Travel Approval, Travel Expense 68-1 2 of 12 And Per Diem Generally non -compensable Generally non -compensable Example #2: If you have a 1 % hour layover, you will be paid for that 1 % hours if the time falls within your normal work hours. Travel time within normal work hours is compensable even on days you normally do not work. Example: If you normally work Monday - Friday from 8:00 a.m. to 5:00 p.m. and travel on a Sundcry from 3:00 p.m. to 7:00 p.m., the normal work hours of 3:00 p.m. to 5:00 p.m. are compensable, even though the travel occurred on a day that is not a normal work day for you. Under the FLSA, travel as a passenger during times outside of normal work hours is generally not compensable. There are, however, exceptions to this rule. First, as a matter of practice, travel time outside of normal work hours may be compensable in limited circumstances when the travel schedule is established for the Municipality's convenience. Individual circumstances will be evaluated on a case-by-case basis and require the express written pre -approval of the Municipal Manager, CFO, or Director of Economic and Community Development. Second, Employees required to work while traveling are compensated for all time they spend working, regardless of when they travel. Third, travel time for an employee who drives an automobile, or an employee who is required to ride therein as an assistant or helper is compensable. The chart below summarizes compensation requirements for travel as they relate to normal work hours and normal work days: K. Payroll time codes Travelers are paid pursuant to FLSA requirements while in travel status. Include compensable travel time as hours worked when determining overtime eligibility. Code timesheets with appropriate time codes to facilitate compliance. Payroll codes include: TVL: Travel Time. Time spent on a plane during regular work hours regardless of the day. The employee does not have to work while on the plane during regular work hours to be compensated for travel time. Employees may be compensated for up to I % hours immediately prior to departure for checking baggage and security screening purposes if the time falls within the employee's normal working hours. Employees are also paid for up to I '/z hours spent waiting for connecting flights if the time falls within normal work hours. Travel time counts as hours worked when determining overtime eligibility. Use the time zone where you are to calculate TVL as time zone changes should not be considered. Example: If a traveler departs Anchorage at 7:00 and arrives in Seattle at 11:00 (10:00 Alaska time), then the traveler is paid for three hours, not four. TNL: Training Outside Anchorage. Time spent outside the Anchorage area attending a conference or other event while learning or expanding knowledge for their position. TDY: Temporary Duty Outside Anchorage. Temporary time spent outside the Anchorage area while performing regular duties. L. Travel Expenses and Related Rules: Payments are made only after the Travel Authorization is appropriately approved. Travelers may be personally responsible for payments made if the trip is not approved. Travelers choosing to use personal funds to pay airfare and registration should know travel advances are not issued beyond 30 days prior to departure. Page 84 of 109 Consideration And Discussion To Change The Travel Policy Normal Work Day Not a Normal Work Day Normal work hours Compensable Compensable Non -work hours Generally non -compensable Generally non -compensable K. Payroll time codes Travelers are paid pursuant to FLSA requirements while in travel status. Include compensable travel time as hours worked when determining overtime eligibility. Code timesheets with appropriate time codes to facilitate compliance. Payroll codes include: TVL: Travel Time. Time spent on a plane during regular work hours regardless of the day. The employee does not have to work while on the plane during regular work hours to be compensated for travel time. Employees may be compensated for up to I % hours immediately prior to departure for checking baggage and security screening purposes if the time falls within the employee's normal working hours. Employees are also paid for up to I '/z hours spent waiting for connecting flights if the time falls within normal work hours. Travel time counts as hours worked when determining overtime eligibility. Use the time zone where you are to calculate TVL as time zone changes should not be considered. Example: If a traveler departs Anchorage at 7:00 and arrives in Seattle at 11:00 (10:00 Alaska time), then the traveler is paid for three hours, not four. TNL: Training Outside Anchorage. Time spent outside the Anchorage area attending a conference or other event while learning or expanding knowledge for their position. TDY: Temporary Duty Outside Anchorage. Temporary time spent outside the Anchorage area while performing regular duties. L. Travel Expenses and Related Rules: Payments are made only after the Travel Authorization is appropriately approved. Travelers may be personally responsible for payments made if the trip is not approved. Travelers choosing to use personal funds to pay airfare and registration should know travel advances are not issued beyond 30 days prior to departure. Page 84 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68-1 3 of 12 And Per Diem (1) Registration Fees a. Refer to the Travel Procedure Guide for payment procedures. (2) Airfare a. All air travel must be in coach class unless approved in writing by the Mayor. Travelers are not required to fly "red-eye" nor stay over a Saturday night to obtain a lower airfare. Travelers may use their personal upgrades to fly business or first class, if there is no extra cost to the Municipality. b. Do not purchase airline tickets from a current year budget for travel scheduled in a future year if the intent is to pre -fund the expenditure or to expense the cost because current year funding is available. c. The Municipality will not reimburse employees for frequent flyer miles used to fly on Municipal business; however, fees and taxes incurred to use the miles may be reimbursed. d. The Municipality will pay business related baggage fees. e. Refer to the Travel Procedure Guide for reservation and payment procedures. (3) Ground Transportation a. Private Vehicle I. The Municipality will reimburse the traveler for use of a privately owned vehicle at the current rate established by the Internal Revenue Service (IRS) or at the rate established in approved labor agreements, whenever applicable. Actual costs of fuel, repairs, insurance or other expenses are non -reimbursable. 2. If the traveler requests private vehicle travel that is more expensive than the cost of air and/or rental vehicle travel, the excess costs are non -reimbursable. In such cases, travelers must document the cost comparison by obtaining a quote for travel by air. 3. Mileage reimbursement earned in excess of the current IRS rate (due to an approved labor agreement) is included in the employee's taxable wages, per IRS regulations. Note: the current IRS rare can be obtained at IVIY6N.GSA. Gl1P. 4. Travelers driving personal vehicles on behalf of the Municipality must carry at least the minimum insurance required under Alaska state law and have a valid driver's license 5. Parking violations and locksmith fees are not reimbursed. b. Car Rental I . Use public transportation, shuttles, and taxis if reasonable and less expensive than rental cars. 2. Use compact or mid-size rental cars. Renting a larger car may be permitted if several travelers travel together or circumstances require the use of a larger car. In these cases, submit a written explanation with the Travel Expense Report. 3. Fill the tank on rental cars before returning them to avoid being charged a fuel premium. 4. The Municipality is self-insured. Rental car insurance will not be reimbursed. The Municipality's insurance does not cover periods (lie vehicle is used for personal reasons (insurance coverage during such Page 85 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68-1 4 of 12 And Per Diem periods is the traveler's responsibility). Certain countries require car rental insurance; in such cases, coverage is reimbursable. Non -employees may not be reimbursed for rental car insurance if they carry a personal auto insurance policy. Consult Risk Management for details. 5. Parking/traffic violations and locksmith fees are not reimbursable. 6. Fees for GPS rentals are not reimbursable. Travelers should obtain maps or driving directions and familiarize themselves with the area prior to departure if necessary. Free internet based mapping programs such as MapQuest, Google Maps, & Yahoo Maps, are available and should be used as needed. 7. Refer to the Travel Procedure Guide for reservation and payment procedures. C. The Municipality will reimburse travelers for taxi, shuttle, other ground transportation, and parking expenses directly related to official business. (4) Lodgin, a. The Municipality will pay for lodging the night before official business, and for each night of an official business day. However, travelers should attempt to return on the last official business day (rather than the next day) whenever possible, if the per diem and hotel savings exceed any additional ticket costs. b. If a Saturday layover results in lower airfare, the Municipality will pay for additional lodging if the end result is a net savings. See section 21.(6) for more information. c. The Municipality will pay lodging costs (room and tax) and other hotel fees such as energy surcharges at the lowest available rate (request government, economy and/or conference rates, and bring Municipal ID while traveling, to secure the lowest rate). d. Refer to the Travel Procedure Guide for reservation and payment procedures. (5) Per Diem a. The Municipality will not pay per diem unless there is an overnight stay. b. The Municipality will pay $48.00 per diem for meal and incidental expenses for each official business day. If the traveler flies early to reduce the cost of airline travel, he will be reimbursed per section 2.L. (6), if there is a net savings to the Municipality. c. The Municipality will pay 75% ($36.00) of the per diem rate each travel day. d. The Municipality will not reimburse meal and incidental expenses exceeding the per diem limits. e. Deduct personal expenditures, including personal meals, and other unauthorized purchases charged to procurement cards. f. The per diem rate may exceed the Federal per diem rate (Federal rates vary based on travel locality and travel dates). Any excess is included in the traveler's taxable wages per IRS requirements. Travelers may opt for a lower per diem rate to avoid having the excess reported as taxable. Federal per diem rates are @ w%vw. sg•a.;ov. g. A traveler's departure or return date may cross over two calendar days. Example: A traveler returns on a flight departing at 9:00 p.m. and arriving at 2:00 a.m. the following day. Per diem calculations include all days traveled, even if they were partial days. Page 86 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68.1 5 of 12 And Per Diem h. Meal tickets: Travelers who purchase and are reimbursed for meal tickets are not eligible to receive full per diem. Travelers are eligible for per diem less the cost of meal tickets purchased. (6) Saturday Travel, Side Trips and Extended Trams a. if a layover results in lower airfare, the Municipality will pay for additional lodging and per diem if the end result is a net savings. To demonstrate a net savings, the traveler must attach two airline ticket quotes to the Travel Authorization — one for travel to and from the event without the layover, and one for travel to and from the event with the layover. The two quotes quantify the savings realized by the layover. b. If the traveler requests an extended trip, the traveler must attach two airline ticket quotes to the Travel Authorization — one for travel to and from the event without the extended trip, and one for travel to and from the event including the extended trip. The two quotes quantify the difference in ticket price. The Municipality will reimburse the lower of the two quotes, but will not reimburse extra car rental, per diem or lodging during the extended trip. c. When a side trip is requested, the traveler must attach two airline ticket quotes to the Travel Authorization -- one for direct travel to and from the event, and one with the side trip. The two quotes quantify the difference in ticket price. The Municipality will reimburse the lower of the two quotes, but will not reimburse extra car rental, per diem or lodging during the side trip. d. If an outside organization pays for airfare for a trip including a personal extension or a side/triangle trip, a business only air quote must be provided to that organization. This provides adequate accounting that may prevent the travel expenditures from being reported as taxable income to the traveler. e. Examples: Day of Return Ticket Total Hotel Reimb. Hotel Approved Total Reimb. Scenario # Scenario Conference Day Price ($150/night) ($150/night) Per Diem Cost Cost 1 Traveler arrives Sunday Monday Tuesday $1,200 $300 $300 $90 $1,590 $1,590 Traveler agrees to travel Saturday in 2 order to lower ticket cost Monday Tuesday $500 $450 $450 $126 $1,076 $1,076 3 Traveler requests Fri. travel Monday Tuesday $600 $600 $300 $90 $1,290 $990 4 Traveler requests a personal side trip Monday Tuesday $800 $450 $300 $90 $1,340 $1,190 In scenario # 2 above, the Saturday traveler is eligible for frill reimbursement of his ticket and hotel, and appropriate per diem (including Saturday), since the layover, even with these additional costs, resulted in net savings to the Municipality. In scenario #3 above, the Friday traveler is eligible for full reimbursement of his ticket ($600) the Sunday hotel total ($300), and the Sunday per diem ($90). He or site is not eligible for any Friday or Saturday hotel and per diem costs since he or site requested an extended stay for personal reasons. In scenario #4 above, the traveler making a side trip is eligible for full reimbursement of his ticket ($800) because it results in net savings to the Municipality. However, he or she is not eligible for any additional hotel or per diem reimbursement, since he or site requested the side trip for personal reasons. f. In rare instances, an employee may have to amend a previously -scheduled personal trip to include a business component. In such a case, the Municipality will reimburse any increase in travel costs. For instance, if an employee on vacation had to amend a return flight to stop for business, and the flight change increased the employee's airfare by $300, the Municipality would pay the increased cost; however, if the employee Page 87 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68-1 6 of 12 And Per Diem amended his return flight without additional cost, the Municipality will not "split" or pay a portion of the cost of the traveler's ticket. (7) Other Expenses a. The Municipality will pay for necessary business meals per P&P 68-3. Travelers must review P&P 68-3 to understand the type of business meal costs that will and won't be reimbursed. Reimbursements will not be made if itemized receipts are not provided. b. Under no circumstances will the Municipality pay for alcohol. c. The Municipality will reimburse telephone calls and other official expenses when directly related to official business. Identify each phone call as either business or personal. d. Fees for entertainment, spouse expenses, movies, and similar expenses are the traveler's responsibility and will not be paid by the Municipality. M. Procurement Cards (l) Review P&P 48-16 to understand which charges should or should not be charged to a procurement card. Do not use Municipal Procurement Cards to pay any persona/ expenses, including personal meals and alcohol. N. Travel Advances (1) Accounts Payable will process travel advances five business days after receiving the original approved Travel Authorization. Travel advances cannot exceed 80% of the estimated business expenses for lodging, per diem, car rental, and miscellaneous costs; and 100% of airfare, agent fees, and registration fees. Travel advances are not issued for travel expenses charged to a Procurement Card. (2) Advances are not distributed more than 30 days in advance of travel. (3) Travel advances must be settled within 45 days after travel completion. O. Trip Cancellations/Changes (1) Travelers: 1) contact Accounts Payable as soon as possible, 2) call the hotel and car rental agency at least 72 hours in advance to cancel the reservation and avoid unnecessary charges, 3) call the airline in advance to obtain credit for the unused ticket, 4) contact the travel agent or airline to inform them of the cancellation. Travelers bear all costs/fees associated with cancellations and/or travel changes due to non -business reasons. NOTE: For a fee, Alaska Airlines allows a one-time change to who may travel in the event the original traveler is unable to go after a ticket is purchased. (2) Unused airline tickets are normally non-refundable and non -transferable, and carry expiration dates. Division and Department Heads are responsible for monitoring unused airline tickets and apply them toward any future approved Municipal business travel. P. Travel for Education and/or Training Travel for education and/or training requires the completion of additional paperwork. Refer to P&P 64-2 for further guidance. Page 88 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68.1 7 of 12 And Per Diem Q. Vehicle Accidents A traveler involved in a vehicle accident (whether driving a privately -owned vehicle, a Municipal vehicle, or a rental car) while on Municipal business must immediately contact: • Risk Management at 343-7949 (if unavailable, contact NovaPro Risk Solutions at 907-561-1725 or t-877-561- 2700). • Traveler's immediate supervisor. • Compliance Manager at 343-4896 or 727-8191 (cell). R. Additional Information Travelers may be required to supply additional information relating to travel. Example: A traveler's Supervisor might request a summary of the trip undertaken, the training received, and the value to the Municipality. Stich information is not required by this P&P but instead depends upon the requirements established by the traveler's Supervisor, the traveler's Department Head, and/or the traveler's departmental policy. S. Girdwood is located within the Anchorage area. Therefore, reimbursed Girdwood travel expenditures are taxable. 3. ORGANIZATIONS AFFECTED 4. All Municipal agencies, utilities, enterprise organizations, boards, authorities, and commissions. All non -employees traveling on behalf of the Municipality. Contractors who invoice the Municipality for reimbursement of their travel expenditures need not comply. A. Municipal Policy and Procedure 64-2, Training and Educational Assistance Programs. B. Municipal Policy and Procedure 68-3, Reimbursement of Business Meal Expenses. C. Municipal Policy and Procedure 48-16, MOA Procurement Cards. D. Municipal Policy and Procedure 76-1, Reimbursement for Vehicle Usage. E. Municipal Policy and Procedure 24-1, Collecting, Securing, Depositing, and Reporting Cash. F. Municipality of Anchorage labor contracts. G. IRS Publications 463 and 1542. H. Municipal Code 6.40.035, Travel expenditures; payment and reporting. I. Municipal Code 6.10.034, Travel budgeting. J. Travel Procedure Guide. K. Assembly Ordinance 2002-112 Page 89 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68_1 8 of 12 And Per Diem 5. A. Agency Head — The CFO, the Municipal Manager, the Director of the Office of Economic and Community Development, or the Municipal Attorney. B. Anchorage Area - The Municipality of Anchorage (From the Knik River Bridge to Portage). C. Approval - Authorization to travel or authorization for expense reimbursement. Approval must be obtained from the appropriate party, as defined in section 6. D. Assembly Chairman - The Chairman of the Municipality of Anchorage Assembly. E. Business Meal - A meal required to be taken and paid for by an employee in the normal course of conducting Municipal business. See P&P 68-3. F. Business Only Quote: A price quote from an airline or travel agent showing how much it would cost to go on a trip for business only without a personal side trip or extension. G. Department - A subset of an Agency designated by name to be a Department. For the purposes of this P&P, Enterprise Organizations are considered to be Departments. Examples: ML&P, Information Technology, and Police Department. H. Department Head - The highest-ranking employee within a Department. For the purposes of this P&P, the CFO, the Municipal Manager, the Director of the Office of Economic and Community Development and the Municipal Attorney are Agency Heads. 1. Division - A subset of an Agency designated by name to be a Division. Examples: Controller Division and Treasury Division. J. Division Head - The highest-ranking employee within a Division. K. Employee — Any Municipal employee hired in accordance with and subject to the Personnel Rules, and whose activities are directed by the Municipality. L. International Travel - Travel outside of the United States. Travel to U.S. territories is not considered to be international travel. M. Labor contract — A contract between an organized union group and the Municipality. Whenever a labor contract and this Policy conflict, the terms of the labor contract prevail. N. Meal Ticket— A voucher used to obtain meals during a class or conference. O. Municipality - The Municipality of Anchorage. P. Official Business Da v -A day spent outside the point of origin for conducting official business as approved on the Travel Authorization. Official business days may include travel days that don't include the point of origin if the traveler is going from one business destination to another. Q. Per Diem - The rate of pay per day for meals and other miscellaneous expenses. This rate is reduced on travel days per IRS regulations. R. Prohibited Expenses — Prohibited expenses will not be reimbursed by the Municipality. They include, but are not limited to: 1) "buying" frequent flyer miles from employees who use miles to obtain airline tickets, 2) passport fees, 3) travel insurance, 4) alcohol, 5) the use of personal watercraft, 6) cruise ship conferences, 7) the use of personal aircraft, 8) dry cleaning and laundry charges and 9) business meals (unless in compliance with P&P 68-3). Page 90 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68.1 9 of 12 And Per Diem 6. S. Procurement Card Holder - An individual who has been issued a Municipal procurement card. T. Supervisor - An individual with regular Municipal responsibility to participate in the performance of some or all of the following functions with respect to other employees: to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, discipline, direct or adjust grievances, or effectively to recommend such action, if, in connection with such functions, the exercise of such responsibility is not of a merely routine or clerical nature but requires the exercise of independent judgment. U. Travel -Travel outside of the Municipality but inside the United States, unless otherwise noted. V. Travel Forms —Travel Authorization and Travel Expense Report Forms. W. Traveler- Any individual traveling on behalf of the Municipality. Travelers are not necessarily employees. Contractor travel need not comply with this policy. X. Travel Authorization -The form showing the trip details and approval. Y. Travel Day -The day of departure from and the day of return to the point of origin. Z. Travel Expense Report - The report showing details of the expenses, the accounting distributions, and approval. AA. W=2 - The wage and tax statement furnished annually to the employee and the IRS. A. Travelers: (1) Read and abide by this P&P, and others that may apply. Read and abide by the Travel Procedure Guide. (2) Complete a Travel Authorization. For Saturday layovers, extended trips, and/or side trips, provide additional information (refer to section 2.L.6). (3) Obtain appropriate Travel Authorization approval. Obtain approval from the employee's Division or Department Head (if unavailable, obtained approval from the employee's Agency or acting Head). (4) Incur only expenses necessary and reasonable to accomplish the trip's approved purpose. (5) Notify Accounts Payable and Division or Department Heads as soon as possible of changes or cancellations in travel plans. (6) Accurately complete a Travel Expense Report when required, and submit for approval within 45 days after completion of travel - travel expenditures not substantiated within 60 days may be reported as taxable income to travelers per IRS regulations. Attach appropriate documentation to the Travel Expense Report, including original receipts (copies of receipts for procurement card transactions) for all expenses. Explain missing receipts (reimbursement may be limited to $20 per expenditure). Receipts for personal meals are not required if claiming per diem. Affix small receipts to a sheet of paper. Explain expenses that exceeded estimates by a material amount. Identify hotel phone charges as business or personal. Forward the original Travel Expense Report and backup documentation to Accounts Payable. (7) Properly code timesheets in accordance with sections 21 and 2.K. of this policy and the FLSA. (8) Attach a copy of flight itinerary and conference brochure / documentation to timesheets to help verify proper time reporting. Page 91 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No, Employee Travel Approval, Travel Expense 68.1 10 of 12 And Per Diem (9) If applicable, explain rental cars at rates higher than compact or mid-size. (10) As requested, provide additional information such as a written summary of the trip, or an analysis of the value of the travel. B. The Mayor or Mayor's designee: (1) Comply with the Traveler requirements listed in section 6.A. (2) Approve/disapprove first class travel. (3) Approve/disapprove travel for the CFO, the Municipal Manager, the Director of the Office of Economic and Community Development, and the Municipal Attorney. In the event the CFO, the Municipal Manager, the Director of the Office of Economic and Community Development and the Municipal Attorney or acting designee(s) are unavailable, approve/disapprove travel for Division and Department Heads as appropriate. (4) Approve/disapprove travel for any employee reporting directly to the Mayor, including employees who jointly report to the Mayor and the Assembly Chairman. In the event Supervisors who jointly report to the Mayor and Assembly Chairman are unavailable, approve/disapprove travel for employees reporting to these Supervisors. (5) Approve/disapprove non-employee travel as appropriate. (6) Approve/disapprove all international travel, other than the Mayor's own international travel. (7) Ensure approved travel utilizes Municipal funds in a prudent and effective manner resulting in maximum Municipal benefit. Verify approved travel is appropriately budgeted. Be familiar with FLSA (see section 2.J), and attempt to ensure traveler work schedules and related travel time are scheduled to minimize overtime. (8) Ensure the CFO, the Municipal Manager, the Director of the Office of Economic and Community Development, the Municipal Attorney and other employees reporting directly to the Mayor complete and submit Travel Expense Reports accurately and on time. Review and approve their Travel Expense Reports timely. C. The Municipal Manager: (1) Complies with the Traveler requirements listed in section 6.A. (2) Approves/disapproves travel for the Mayor, including the Mayor's international travel. Approves/disapproves travel for any Division and Department Heads reporting to the Municipal Manager. If Division and Department Heads reporting to the Municipal Manager are unavailable, approves/disapproves travel for employees within Divisions and Departments that report to the Municipal Manager. (3) Approves/disapproves travel for any employee reporting directly to the Municipal Manager. (4) Approves/disapproves non-employee travel as appropriate. (5) Ensures approved travel utilizes Municipal funds in a prudent and effective manner resulting in maximum Municipal benefit. Verifies approved travel is appropriately budgeted. Be familiar with FLSA (section 2.J), and attempt to ensure traveler work schedules and related travel time are scheduled to minimize overtime. (6) Ensures Division and Department Heads, and other employees reporting to the Municipal Manager complete and submit Travel Expense Reports accurately and on time. Reviews and approves Travel Expense Reports timely. Page 92 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68-1 11 of 12 And Per Diem D. The CFO, the Director of the Office of Economic and Community Development and the Municipal Attome : (l) Comply with the Traveler requirements listed in section 6.A. (2) Approve/disapprove travel for Division and Department Heads reporting to them. If Division and Department Heads are unavailable, approve/disapprove travel for employees within Divisions and Departments reporting to them. (3) Approve/disapprove travel for employees reporting directly to them. (4) Approve/disapprove non-employee travel as appropriate. (5) Ensure approved travel utilizes Municipal funds in a prudent and effective manner resulting in maximum Municipal benefit. Verify all approved travel is appropriately budgeted for. Be familiar with FLSA (section2,J), and attempt to ensure traveler work schedules and related travel time are scheduled to minimize overtime. (6) Ensure Division and Department Heads, and other employees reporting to them, complete and submit Travel Expense Reports accurately and on time. Review and approve their expense reports timely. (7) The CFO reports quarterly travel expenditures to the Assembly per Code 6.40.035. E. Division and Department Heads: (1) Comply with the Traveler requirements listed in section 6.A. (2) Approve/disapprove travel for employees reporting to them. (3) Approve/disapprove non-employee travel as appropriate (4) Ensure approved travel utilizes Municipal funds in a prudent and effective manner resulting in maximum Municipal benefit. Verify approved travel is appropriately budgeted. Be familiar with FLSA (see 2,F), and attempt to ensure traveler work schedules and related travel time are scheduled to minimize overtime. (5) Ensure all employees reporting to them complete and submit Travel Expense Reports accurately and on time. Review and approve their expense reports timely. (6) Ensure any unused airline tickets and related credits are retained and monitored. If an employee with an unused ticket will be traveling on Municipal business before the ticket expires, apply the unused ticket against the cost of the new trip unless it is financially more advantageous to use an alternative airline. F. The Assembly Chairman or designee: (1) Complies with the Traveler requirements listed in section 6.A. (2) Approves/disapproves travel for employees reporting directly to the Assembly (excluding entities reporting jointly to the Mayor and the Assembly Chairman). Approves/disapproves travel for members of the Assembly, other than the Assembly Chairman's own travel (the Assembly Chairman's own travel is approved by the Assembly Chairman's designee). (3) Ensures approved travel utilizes Municipal funds in a prudent and effective manner resulting in maximum Municipal benefit. Verifies approved travel is appropriately budgeted. Be familiar with FLSA (see section 2.17.) and attempts to ensure traveler work schedules and related travel time are scheduled to minimize overtime costs. Page 93 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Subject: No. Employee Travel Approval, Travel Expense 68.1 12 of 12 And Per Diem (4) Ensures individuals whose travel is subject to Assembly Chairman approval (whether directly or indirectly) complete and submit Travel Expense Reports accurately and on time. Reviews and approves their expense reports timely. G. The Controller Division: (1) Reviews travel expense reports for accuracy, completeness, and compliance with this policy and other policies that apply. Compiles documentation in a centralized location and retains per Municipal record retention policies. (2) Approves policy deviations. (3) Issues travel advances. (4) Reconciles travel advance accounts. (5) Enters travel expenditures into the financial system and reimburse travelers when appropriate. (6) Collects, secures, deposits and records payments made to the Municipality when travelers or other organizations reimburse the Municipality for travel -related expenditures. (7) Reports to Payroll any mileage reimbursements made to travelers where the paid rate exceeds the federal rate. (3) Reports to Payroll any per diem payments made to travelers where the paid rate exceeds the federal rate(s). (9) Report to Payroll any travel expenditures reportable as taxable to travelers in accordance with IRS regulations. (10) Coordinates with departments to utilize cancelled trip tickets in the best possible manner. H. Payroll Clerks: (1) Verify timesheets are properly coded for employees in travel, training, or temporary duty status. (2) Forward names, employee ID numbers and travel dates to the MOA Payroll Supervisor. 7. PROCEDURES Refer to the Travel Procedure Guide for specific step-by-step instructions. 8. ANNUAL REVIEW DATE/LEAD REVIEW AGENCY The Finance Department will review this document each July for any needed revisions. Page 94 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Juneau Travel Policy ADMINISTRATIVE POLICY NO.18-OIR CBJ TRAVEL AND TRAINING POLICY & PROCEDURE 1. PURPOSE The purpose of this policy is to provide City & Borough of Juneau (CBJ) employees with consistent and equitable guidelines regarding travel for business or training purposes. Employees are expected to exercise business and personal judgment regarding travel expenses incurred and submitted for reimbursement. 2. INTRODUCTION TO TRAVEL POLICY AND PROCEDURE The following sections are provided to assist in making the best use of budgeted training dollars while providing for the best possible training experiences for CBJ employees. This policy encompasses business travel, travel for training and travel reimbursements. 3. TRAVEL DEFINITIONS Advances: Funds received prior to traveling to cover the approved costs associated with the trip. To be eligible, Advance Requests must be received by Purchasing a minimum of three (3) weeks prior to travel departure date. Advance Requests submitted earlier than 3 weeks minimum will be processed no more than 21 days prior to departure. Complex Travel: CBJ will pay for travel agency fees if a travel agent is necessary for complex travel. Complex travel is defined as a necessary trip with multiple (more than two) carriers or multiple destinations within the same trip. Department Travel Officer/Alternate Travel Officer: The employee assigned to administer this policy and book all travel for a specific employment unit. The Travel Officer makes all CBJ travel arrangements for employees in the employment unit and assures compliance with the travel policy. Each Department Director shall designate a Travel Officer and an alternate Travel Officer who are trained by the Manager's Office and/or the Purchasing Division to administer this policy. Some departments will also utilize Travel Support personnel. These individuals will assist the Travel Officer or Alternate by putting together travel documentation for their division. Employee: A person employed by any department subject to any portion of the CBJ Personnel Rules. Page 1 of 13 Administrative Policy 18-01R CBJ Travel Policy and Procedure Page 95 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. Gratuities/Tins: If tips are given for eligible services that are incurred during travel/training for which a tip is customary, such as taxis, shuttles, or airport skycap fees they may be reimbursed. Gratuities must be clearly shown on a submitted receipt and are limited to 15 percent for services or $2.00 for complimentary services. Tips for meals are included in the per diem allowance. Local Training Request: The form used to request and reimburse for local training or webinars. Receipts: Documentation of expenditures while on travel status. All receipts must be imprinted with the name of the provider, or the name and address printed on the receipt by the employee. The actual receipt for purchasing air travel is necessary for reimbursement. Any deviations to planned travel must be documented. Training Plan: A detailed training plan for employees, provided as part of the annual budget submittal. Travel: a. Transportation Expenses: Transportation expenses include commercial carrier fares, vehicle mileage allowance, necessary taxi and/or bus fares, certain parking fees, and other essential transportation expense while on official CBJ business. Fines for traffic or parking violations will not be reimbursed. b. Per Diem Expenses/Meal Allowance: Per Diem expenses are for meals while traveling on official CBJ business. c. Other Expenses: Other expenses include charges for business-related: telephone calls, internet fees, faxes, emergency purchases of supplies and other charges necessary for the completion of the official business function. Alcohol and entertainment, including in -room movies, will not be reimbursed. Travel Status: Employees shall be considered in travel status from the time an authorized trip begins until it ends. When personal leave is combined with authorized travel, the employee ceases to be on travel status for the purposes of reimbursement (i.e., lodging, per diem) from the hour business or training ends. Travel Report (TR): The form used to document pricing and activity from submittal through completion of travel and reconciliation. Page 2 of 13 Administrative Policy 18-01R CBJ Travel Policy and Procedure Page 96 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. 4. TRAVEL RESPONSIBILITES a. Employee — It is the responsibility of the employee to: • Know the travel policy and comply with all provisions therein. • Notify Travel Officer a minimum of six weeks in advance of the travel dates; this can affect the employee's ability to receive an advance. • Inform the Travel Officer as soon as practical if there are changes before or during the travel. • Provide all required receipts at the termination of travel in a timely fashion (no longer than seven (7) working days after completion of travel) for reconciliation. • Repay any excess advance funds at the time of reconciliation. • Turn in leave requests if combining personal leave with CBJ travel. b. Assembly and CBJ Boards and Commission members —It is the responsibility of these individuals to: • Know the travel policy and comply with all provisions therein. • Notify Travel Officer a minimum of six weeks in advance of the travel dates; this can affect the employee's ability to receive an advance. • Inform the Travel Officer as soon as practical if there are changes before or during the travel. • Original signatures from these individuals on the Travel Request form are not required. c. Department Travel Officer — It is the responsibility of the Travel Officer to: • Confirm that the requested travel and/or training is in the budget and training plan, or approved by the Department Director if not originally included in the budget and training plan. • Fill out Travel Report (TR). • Ensure that all paperwork submitted is complete, accurate, and timely. • Research the information necessary to determine CBJ financial obligation for combined travel, and to insure that all CBJ travel plans (business and training) are made using the most cost effective package available. • Submit Travel Reports with attached documentation to the Department Director for approval. Department Director travel must be submitted to the Manager's Office for approval. Enterprise Board Director's travel must have their respective Board's approval. • Comply with all CBJ Purchasing Card User Manual procedures for any credit card expenditures related to the approved travel. • Book all travel after Department Director or Manager's Office approval. The use of travel agencies to book travel is restricted to particularly complex travel arrangements. • Submit Travel Reports and related documentation to Purchasing Division for processing. • Review all reconciliations for accuracy and completeness prior to submission. �. • Inform Department Director if an employee has not complied with travel policy. Page 3 of 13 Administrative Policy 18-OIR CBJ Travel Policy and Procedure Page 97 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. • Submit all travel records to Purchasing Division at the completion of travel in a timely fashion. • In the case of cancelled travel/training or if other circumstances arise and the travel/training cannot be accomplished, contact all vendors to cancel reservations and request credits. Vendors include: airlines, hotels, rental car agencies, registration recipients, conference organizations, etc. Notify Accounts Payable and Purchasing of cancelled travel promptly and provide travel reconciliation form. • The CDD travel officer will handle travel for Planning Commission members. d. Department Director or designee will: • Designate Travel Officers and Alternate Travel Officers. • Review all paperwork submitted for completeness and accuracy. • Approve travel as appropriate. • Verify that Travel Officer has submitted accurate and compliant paperwork at each level of travel process, request through reconciliation. • Take appropriate disciplinary steps if an employee or Travel Officer does not comply with all elements of the policy. e. Purchasing Division will: • Aid the Manager's Office in training Travel Officers and alternates. • Issue Purchasing Orders to travel related expenditures, as needed when over the CBJ P - Card limit. • Review departmental compliance with policy as necessary. E City Manager will: • Approve all Director/Assembly Travel Requests and Reconciliations. • Revise policy as appropriate. • Act as liaison to Travel Officers for any procedural changes or updates. S. TRAVEL AUTHORIZATIONS All official travel must be authorized by the department director or designee before making travel commitments. a. Requests to travel, related to training, must fall within the departmental training budget plan, as approved for the current fiscal year, or the training plan must be amended. CBJ budgets on a two-year cycle. Training funds may not be moved from a future fiscal year to the current fiscal year. b. Employees may not pay for CBJ travel nor book the travel themselves. Personal credit card usage for standard CBJ travel (i.e., airfare/ferry tickets) is not allowed. All CBJ travel must be booked by the Department Travel Officer, unless there is personal travel being combined with CBJ business travel/training. See Section 7 for provisions governing combined CBJ/Personal travel. Page 4 of 13 Administrative Policy 18-OIR CBJ Travel Policy and Procedure Page 98 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. c. In the case of a Travel Officer requesting to travel, the Alternate Travel Officer will make the arrangements and compile the required paperwork prior to approval. The Alternate Travel Officer will make the purchases after Director approval. 6. TRAVEL ADVANCES a. Travel Reports must be submitted to Purchasing a minimum of three (3) weeks in advance of the departure date in order for the employee to be eligible to receive a travel advance. If the request is received with less than three weeks' lead-time, the employee will not be guaranteed a travel advance, and reimbursement will be made upon completion of the travel reconciliation. Funds may be advanced for the following items: • Meal allowances (per diem) • Car rental not covered by the State of Alaska rental contract. All other expenses are paid to the vendor by CBJ; in advance, if time allows. Eligible miscellaneous expenses will be reimbursed to the employee upon completion of travel. b. Travel advances will not be provided for travel that is reimbursed directly to the employee by another agency. If the responsible agency is willing to reimburse CBJ directly, a travel advance may be approved. Employee -direct agency reimbursed travel may be booked on the employee's personal credit card after approval by the Department Director or designee or City Manager. c. Travel advances will be mailed to the employee's home or direct deposited through ACH. d. All questions regarding the status of a travel advance check should be directed to the Accounts Payable Department. 7. TRAVEL FOR EMPLOYEE CONVENIENCE OR COMBINING PERSONAL WITH BUSINESS TRAVEL. a. There are times when it might be advantageous to the employee to be allowed to incorporate personal leave with necessary business travel and training. CBJ is not required to approve this combination. Any abuse of the privilege will result in the employee losing the privilege to combine personal travel with business/training travel, and can result in disciplinary action. b. Any deviation in travel for the convenience of an employee or to incorporate personal leave must be approved in advance by the Department Director or designee. If an employee travels on official business by an indirect route or altered time schedule for the employee's own convenience, any additional expense will be borne by the employee. c. The Travel Officer will determine the cost for employee travel by determining the lowest cost of the travel if it were undertaken for business purposes only. The determination must be Page 5 of 13 Administrative Policy 18-01R CBJ Travel Policy and Procedure Page 99 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. documented. Any additional cost for any other purpose is the responsibility of the employee. For combined personal and business travel: • If there is no cost difference with the added personal travel the airfare must be purchased by the Travel Officer using the CBJ p -card. • If there is a cost difference the employee must work with the Travel Officer to book and purchase the airline ticket. All reimbursements, including personal credit card charges, will be processed in accordance with Travel Policy Section 6, Travel Advances. • CBJ will not pay for travel agency service fees. • CBJ is only responsible for that portion of lodging necessary for the employee to conduct CBJ business. Any extra costs, such as extra persons in the room, larger room to accommodate extra persons, extra nights, etc., will be the responsibility of the employee. • Car rental must be secured and paid for by employee, if any of the following apply: Employee plans to use the vehicle for a longer period of time than would otherwise be necessary to conduct business (either before or after employee is conducting CBJ business). The employee's spouse or other family member has accompanied the employee on the trip, and they intend to drive the vehicle. The employee will be reimbursed the cost of the car rental only for the period of time they were using the vehicle while conducting CBJ business. NOTE: When the employee rents and pays for a car rental, his/her personal auto liability insurance will provide the first layer of coverage. CBJ's auto liability insurance would provide a second layer of coverage, but only while the employee is in Travel Status, and is the driver of the vehicle. The Travel Officer will book and pay for other business related expenses as usual. d. Any employee expenditures incurred prior to receiving final approval will not be reimbursed by CBJ if the travel or training is not approved. e. When personal leave is combined with authorized travel, the employee ceases to be on travel status for the purposes of reimbursement (i.e., lodging, per diem) from the hour business or training ends. f. Per Diem will be paid for only one travel day, either leaving Juneau or returning to Juneau, for all travel that incorporates personal time, regardless of whether it is personal leave, LWOP or a weekend stay to extend time in the destination city. This is regardless of whether the personal travel takes place before, during, or in the middle of business travel. g. Any additional time away from duty that may be required for such indirect travel will be charged to approved personal leave or leave without pay. h. When there is an unplanned interruption of travel for the personal convenience of the employee, the reimbursement expenses allowed may not exceed that which would have been incurred by uninterrupted travel. Page 6 of 13 Administrative Policy 18-OIR CBJ Travel Policy and Procedure Page 100 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. 8. TRANSPORTATION, LODGING, AND PER DIEM a. AIRFARE • When traveling on city business, the travel officer must obtain the lowest economy class airfare available and travel by the most economical route, taking into account time efficiencies. The employee is not expected to overnight en route, leave after 10 PM or utilize a similarly inconvenient schedule. If the employee prefers a different schedule, resulting in a higher cost to CBJ, the employee will pay the difference. • CBJ will pay for an additional night stay if the airfare savings is greater than the additional cost of lodging, ground transportation, and per diem combined. • CBJ will not reimburse for mileage award tickets. Companion fares may be combined with CBJ travel but must be booked under the provisions of Section 7. The employee must be designated as the primary ticketed passenger in order to be reimbursed for the amount of the fare (minus the companion fare fee). • If an employee accepts a voluntary delay in travel, all CBJ responsibility for reimbursement ceases for per diem, lodging, or any other expense occasioned by the delay. If the delay impacts the employee's ability to return to work as scheduled, the employee will be required to notify the supervisor and take personal leave. • Employees need to be cognizant of airline baggage and weight restrictions. Collected training material or equipment may be shipped via economical means to avoid excess baggage charges when possible, provided the charges for shipping are less than the excess baggage charges. b. USE OF PRIVATELY OWNED VEHICLES FOR CBJ TRAVEL When the use of an employee's own vehicle for travel outside Juneau is authorized, the employee will be reimbursed at the reimbursement rate set forth in Personnel Rule 18 PR 045. Vehicle insurance is solely the responsibility of the employee. The employee must comply with the provisions in the CBJ Vehicle Reimbursement Policy. When a privately -owned vehicle is used for the convenience of an employee, reimbursement for transportation expenses will be mileage or the lowest available fare by a common carrier, whichever is less. Any additional time away from duty that may be required for such travel will be charged to personal leave or leave without pay. c. TAXI/SHUTTLE • Travelers are expected to utilize the lowest cost ground transportation, taking into account time efficiencies, which may include the services of airport shuttles, buses, and taxis. Reimbursement for these items will be made at the conclusion of travel, unless advance reservations are available using CBJ p -card. For these costs to qualify for reimbursement, receipts must be submitted with the travel reconciliation. Page 7 of 13 Administrative Policy 18-OIR CBJ Travel Policy and Procedure Page 101 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. d. RENTAL VEHICLES • Use of rental vehicles are limited to instances where it is strictly necessary for the conduct of CBJ business or where it can be demonstrated that use of a rental car is a more economical alternative to the use of other modes of ground transportation. When lodging is at the conference hotel, rental cars will only be approved if sufficient justification is provided. It is the responsibility of the Travel Officer to reserve rental cars. Employees may use personal credit cards to pay for rental vehicles for areas outside of State contract sites. For these costs to qualify for reimbursement, receipts must be submitted with the travel reconciliation. • Vehicles may only be rented for that portion of travel that is necessary for CBJ business. • Vehicles for Anchorage, Fairbanks, Kenai, and nearby destinations (i.e., Girdwood, Palmer, Wasilla, Homer) must be rented from the current contract with the State of Alaska, of which CBJ is a party. Receipts from any other vendor in these areas will be reimbursed only if the State of Alaska contractor is unable to provide a vehicle at a reasonable cost. All other rentals should use the State of Alaska's national contract, if available. Every attempt must be made to utilize the State of Alaska's contract rental car agreements. • The employee is authorized to accept the prepaid fueling option offered by rental car companies if it appears to offer savings by doing so. If this option is not accepted, the employee is responsible for fueling the vehicle and returning it fully fueled. CBJ will not reimburse the fees charged for bringing a car back with insufficient fuel. • The employee must retain all receipts for fuel in order to be reimbursed for the expense. If the receipt does not have the name and phone number of the fueling station imprinted on it, the employee needs to note it on the receipt. All receipts must be submitted to the Travel Officer upon completion of travel in order to receive reimbursement for the expense. • DO NOT SELECT SUPPLEMENTAL INSURANCE. CBJ will not reimburse for this fee. • An additional driver may be selected in case of CBJ employees sharing a rental vehicle. Employees traveling to the same destination must share a rental car, unless the scheduling of the employee's participation is such that sharing a rental car is rendered impractical. For insurance purposes, only CBJ employees on travel status may drive rental cars. e. PARKING AND TRAVEL TO AND FROM JUNEAU INTERNATIONAL AIRPORT • With receipts, CBJ will reimburse the employee for the lesser cost of a taxi roundtrip from their home location or parking at the Juneau International Airport. f. LODGING ALLOWANCES While traveling on official business that requires overnight lodging, employees are allowed reimbursement for actual room expense at a commercial establishment. The Travel Officer is expected to select economical but adequate accommodations within reasonable distance of the training or meeting site. When making reservations, the Travel Officer should request the government rate. Page 8 of 13 Administrative Policy 18-OIR CBJ Travel Policy and Procedure Page 102 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. • All hotel parking fees must be specified in the travel reconciliation. Employees are only to use valet parking if it is equal to or less than self -parking. • CBJ will not pay for phone charges (with the exception of business-related calls), room service, in -room entertainment, mini bar charges, toiletry charges, hotel services (i.e., dry cleaning, laundry), alcohol, or other personal expenses. • If the employee arrives at a hotel and decides they need to move, the employee must contact the Travel Officer as soon as practical, typically within 24 hours. The employee is responsible to procure lodging at a comparable cost to the approved lodging cost. • When more than one employee is attending the same conference, room sharing is encouraged but not required. • Employees are normally required to stay in the training destination city or immediate vicinity. If an employee wants to stay in another city and rent a car to drive to the training, CBJ will not pay for a rental car, unless the employee can demonstrate to the Travel Officer that there is a cost savings available by doing so. • If an employee is assigned a CBJ laptop, and it is necessary for the employee to stay in communication with CBJ for the duration of his/her business travel or training, CBJ will reimburse hotel internet connection charges if specified on the Travel Report. CBJ will not reimburse personal internet connectivity charges. g. PER DIEM — MEAL ALLOWANCES • A meal allowance (per diem) may be paid while the employee is on travel status. To -� compute meal allowances for partial days on travel status, the following amounts are in effect: Breakfast $12.00 12:01 a.m. to 10:00 a.m. Lunch $16.00 10:01 a.m. to 3:00 p.m. Dinner $32.00 3:01 p.m. to midnight Total $60.00 • Receipts for meals are not required. The cost of gratuities is included in the per diem rate. • If meals are included in lodging, the conference, or training registration fee, the employee's daily per diem will be adjusted accordingly. For example, if the hotel rates includes breakfast, the employee will not receive the per diem for breakfast for the days spent in the hotel. If the conference registration fee includes lunch, the employee will not receive the per diem for lunch for the days lunch is included in the registration. If the employee has a particular reason that would preclude them from partaking of the meals offered, this must be stated on the Travel Report. • If there is an additional charge to attend a luncheon or dinner event that is deemed important for the employee to attend as part of the training experience, CBJ may cover the cost of that particular meal, and the per diem for that meal will be deducted from the employee's daily per diem. • CBJ does not cover the costs associated with social functions or recreational events, such as optional tours, golf matches, cocktail hours, recreational opportunities, etc. • CBJ does not pay for alcohol. Page 9 of 13 Administrative Policy 18-OIR CBJ Travel Policy and Procedure Page 103 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. 9. TRAVEL ON A DAY OFF AND OVERNIGHT TRAVEL, Pay for Hourly Employees The federal Fair Labor Standards Act (FLSA) governs how employees who are paid an hourly wage will be compensated for hours when on travel status. The Department Director or designee must calculate and take into consideration any overtime liability when authorizing travel plans. For example, when determining whether it is less costly to CBJ for an hourly employee to stay over an additional night in order to obtain supersaver airfare, the Department Director or designee must also include in the calculation employee wages. An employee is paid while on travel status under the following circumstances: a. If an employee is required to travel during their normal work hours, even on their regularly scheduled day off (e.g., Saturday, Sunday, holiday), the employee will be paid for those hours spent as a passenger on a public conveyance. This applies whether or not the employee was working while traveling. Example: If an employee's normal work hours are between 8:00 a.m. and 4:30 p.m. Monday through Friday, and travel occurs between 8:00 a.m. and 4:30 p.m. on a Saturday or Sunday, the travel time is compensated at the employee's regular rate of pay. b. If an employee's travel on a public conveyance occurs outside of regular work hours, and the employee did not work while being transported, then the time is not compensated. Employees are to refrain from working during travel time which is outside their regular work hours unless overtime has been approved in advance. c. If an employee's travel requires that the employee be the pilot or driver, then the employee will be paid for the travel time as if working. This applies whether or not the time falls within normal working hours. d. Ground travel to and from the airport is not compensated time, since the FLSA considers that to be similar to travel time to and from work. e. Work weeks run from midnight Sunday to midnight Sunday. f. Overtime accrues after the person has worked more than 8 hours in a day or 40 hours in a work week if the person is an hourly employee, except for work units which may have differently assigned work periods that may exceed 40 hours. Employees should refer to the relevant collective bargaining agreement or personnel rule. g. If the travel includes a time change, the analysis is performed in actual hours, so regardless what time it is at the traveler's ultimate destination, the time is counted by first converting it to Alaska Standard Time or Alaska Daylight Savings Time. h. If the employee takes any type of leave during the work week in which travel occurs, the number of hours toward the overtime threshold will be reduced. Page 10 of 13 Administrative Policy 18-01R CBJ Travel Policy and Procedure Page 104 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. For example: Alan worked Monday through Thursday, 8:00 a.m. to 4:30 p.m., but took 7.5 hours personal leave on Friday, then spent 7.5 hours on a plane Saturday during his regular work hours and took Sunday off. In this case, no overtime liability will accrue because Alan did not actually work 40 hours before the travel started. Alan would receive straight time pay for the 7.5 hours spent in travel status during regular work hours on Saturday. i. When possible, the employee's work schedule should be adjusted to accommodate the additional time worked without creating overtime liability. For example: Fred normally works Monday through Friday, 8:00 a.m. to 4:30 p.m., but is expected to travel during normal work hours on Saturday. The supervisor may adjust Fred's work schedule to begin on Tuesday through Saturday (Remember to give the advanced notice of the change in work schedule required by the relevant collective bargaining agreement or personnel rules). 10. COMPLETION OF TRAVEL -RECONCILIATION a. Within seven (7) working days of the date travel is completed, the employee must submit all documentation supporting travel reconciliation to the Travel Officer, even if there are no funds due to the employee or to CBJ. The Travel Officer will complete the reconciliation portion of the `1 Travel Report. It is the Travel Officer's and Department Director's responsibility to ensure all department employees traveling on City business provide the documentation necessary to complete the reconciliation portion of the Travel Report. The completed TR and appropriate authorization shall then be forwarded to the Purchasing Division. Failure to comply with timely submission of travel reconciliations is a violation of this policy. b. If the employee incurs obligations beyond those authorized in the Travel Report, the employee may be held responsible for increased costs and may be subject to disciplinary action. 11. LOCAL TRAINING — WEBINARS — ONLINE TRAINING OPPORTUNITIES -ALL EMPLOYMENT RELATED CERTIFICATIONS — CDL RENEWALS a. Registration costs associated with local training may be paid with a CBJ purchasing card by the Travel Officer or designee. Individual training or renewals not purchased with a CBJ purchasing card must be submitted on a Local Training Form. b. Local Training is not eligible for per diem or travel expenses. Page 11 of 13 Administrative Policy 18-OIR CBJ Travel Policy and Procedure Page 105 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.b. c. Department Directors or their designees may require an Employee Educational Reimbursement Agreement be completed for certain training opportunities to be approved. d. University books that CBJ pays for will remain the property of CBJ, unless applicable union contract language states otherwise. e. Webinars (online seminars) or online training opportunities are covered by this policy. As practicable, employees will participate in these during work hours. If the webinars or online training opportunities are not available during the employee's normal work schedule, the supervisor will make adjustments consistent with personnel rules and bargaining agreements. f. Webinars or online seminars will be paid for with the CBJ purchasing card by the Travel Officer or designee AFTER approval by the Department Director or designee. g. Employment Required Certifications — Certifications must be included in the employee's training plan. h. CDL Renewals — are considered local training and must be included in the employee's training plan. 12. VIOLATION OF POLICY Violation of any portion of this policy may result in disciplinary actions up to and including dismissal. 13. ACCOUNT CODE DEFINITIONS • Account 5200 Business travel is used for CBJ employees and Assembly and Boards and Commissions administrative purposes. • Account 5202 Travel and training is used for any CBJ employee and Assembly/Boards and Commissions travel and training costs, except for business travel and training contractual. • Account 5205 Contractual training is used for costs incurred for professional services to provide training (non CBJ employee or Assembly/Boards and Commissions). 14. GENERAL PROVISIONS a. Scope: This policy applies to all agencies, employees, and Assembly/Boards and Commissions members of the City & Borough of Juneau, Alaska. b. Authority to promulgate policy: The City Manager of the City & Borough of Juneau, Alaska, maintains the authority granted by the CBJ Charter to order policy and the guidelines for implementation. c. Effective Date: This policy will take effect on August 21, 2019. This policy supersedes Administrative Policy 18-01. Page 12 of 13 Administrative Policy 18-01R CBJ Travel Policy and Procedure Page 106 of 109 Consideration And Discussion To Change The Travel Policy Dated at Juneau, Alaska, this '2- k day of AU4-U-" Duncan Rorie MER City Manager AGENDA ITEM #2.b. Page 13 of 13 Administrative Policy 18-01R CBJ Travel Policy and Procedure Page 107 of 109 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #4.a. January 25, 2024, Assembly Work Session — Abbreviated Manager's Report Statewide Transportation Improvement Program (STIP) City of Kodiak Mission Road Rehabilitation 5K to 50,000 311 score No KIB inclusions advanced. Transportation Alternatives Program —TAP - No KIB Program Requests advanced Tracked Excavator — Ship to Seward to make the last January Sampson bare to Kodiak. New machine to arrive the beginning of February. 36 -inch bucket will be shipped separately. Clean out bucket that arrived with the original shipment is compatible and will be transported to the Landfill by Brechan. Baler working floor — staff is communicating with the engineers. Engineer feels that the visible cracks underneath are from age and shrinking as the concrete drying After locating the details associated with the epoxy injection repair, not as concerned. Staff will core two 3 -inch cores to be evaluated by the engineer. Evaluating the old mix design which will require the use of non -local aggregate (granite)or other form of metamorphic rock. May need to consider a new mix design of 8000 psi or greater. Evaluating cost for HMI Human Machine Interface) and processor upgrades at the Leachate Treatment Plant. Architectural Review Board met this week. Hospital and Middle School Elevator Modernization reviewed, corrected and recommended for advertising. Hospital Sterilizer and Associated Component design to 35% reviewed and approved for recommendation to move to 65% KFRC Decontamination Upgrades have been reviewed and recommended for advertising and bidding. Must discuss with GSA and NOAA specific to funding source. Page 108 of 109 Borough Manager's Report BOROUGH CLERK'S REPOR"m AGENDA ITEM #5.a. January 25, 2024 1. Projects • Working on travel authorizations for upcoming travel 2. Reminders Q • APOC Financial Disclosure email was sent to you on January 10. POFD forms due by March 15 3. Records Projects O • Working on inputting expiration/review, and purge dates to older contracts • There are about 3 more years worth of contracts folders to go through before we are able to put a destruction list together for all contracts past retention • Currently have two boxes that will be added to destruction list from other departments 4. Travel and Leave Dates Q Please send me your travel dates if you are travelling or taking any time off. Q February 18-24, AML Winter Legislative Conference, Juneau, Alaska April 2024, Cook Inlet Regional Citizens Advisory Council, Kenai, Alaska O August 13-15, AML Summer Legislative Conference, Kodiak, Alaska 5. Upcoming Meetings Q February 15 RM February 28 J WS with COK February 29 WS March 5 JWS with BOE March 7 RM Page 109 of 109 Borough gerk's Report KODIAK ISLAND BOROUGH Meeting Type: A-1% M0 W04- des Date: JG YID(/ O!M 2,5 20 2q Please PRINT vour name lecaibIV Phone number