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2024-02-08 Work SessionKodiak Island Borough Assembly Work Session Assembly Chambers Thursday, February 8, 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. Discussion Of Changing The Transient Accommodations Tax 3-20 Agenda Item Report - Pdf b. Proposed Code Revisions To KIBC 2.125.030 And KIBC 21 -25 2.125.040 Architectural/Engineering Review Board Aaenda Item Report - Pdf C. Consideration And Discussion To Change The Travel Policy 26-98 Aaenda Item Resort - Pdf d. Discussion Regarding Sargent Creek Park Playground 99-123 Equipment Procurement Agenda Item Report - Pdf 3. PACKET REVIEW a. CONTRACTS • Contract No. FY2024-26 With Veolia For Replacement Membranes For The Leachate Treatment Plant In The Amount Of $300,000 ORDINANCES FOR INTRODUCTION • Ordinance No. FY2024-12 An Ordinance Of The Assembly Of The Kodiak Island Borough Amending Kodiak Island Borough Code Title 3 Revenue And Finance, Chapter 3.35 Real Property Tax, Section 3.35.050 Board Of Equalization OTHER ITEMS Page 1 of 129 • Authorization For The Borough Manager To Reimburse Providence Kodiak Island Medical Center For Sterile Processing Department Design To 35% And To 65% For The Combined Cost Amount Of $143,857 • Authorization For The Borough Manager To Reimburse Providence Kodiak Island Medical Center For Reverse Osmosis And Steam Generator Design To 35% In The Amount Of $29,788 • Declaring A City Seat Vacant On The Planning and Zoning Commission (Mr. Dave Townsend) 4. MANAGER'S COMMENTS a. Borough Manager's Report 124-129 20240208 Borough Manager's Report 5. CLERK'S COMMENTS 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, Summer AML 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 129 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT FEBRUARY 8, 2024 4 ' x ASSEMBLY WORK SESSION SUBJECT: Discussion Of Changing The Transient Accommodations Tax ORIGINATOR: Bo Whiteside, Assembly Member RECOMMENDATION: This item was requested by Assembly member Whiteside and co-sponsored by Assembly member Sharratt. At the October 1, 1996, Municipal Election, Initiative Question No. 1 asked the voters the following question: "Shall the Kodiak Island Borough levy and collect a tax not to exceed five percent (5%) of the amount charged persons for using transient accommodations within the Kodiak Island Borough?" This initiative passed with 1054 Yes votes and 956 No votes. As a result of this initiative, Ordinance No. 96-19 was adopted by the Assembly on December 5, 1996, which laid out the implementation and administration of the transient accommodations tax. AS 29.45.670 requires a public vote ratifying an ordinance which imposes a new sales and use tax or raises the rate of levy of a sales and use tax. The KIB transient occupancy tax is labelled as a sales tax under KIB 3.55.010. Under the 1996 vote the Borough can vary the rate between 0% and 5% without a vote, but if the Borough wants to exceed 5% a public vote ratifying the increase will be required. DISCUSSION: ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Discussion Of Changing The Transient Accommodations Tax Page 3 of 129 AGENDA ITEM #2.a. Transient Accommodation Tax Info The last time we did an audit of accommodation tax registrants was around 2012. The information we received was mostly nasty comments (and threats to stop reporting at all if we continued to harass them) and little actual information. We asked for bank statements and if we got them, they were heavily redacted, contained minimal or no deposits; hardly any of it matched what was reported to the Borough. As for the information in our GL: For FY2023, we received $122k of Transient Accommodations sales tax revenue. Of that: • 72% ( $89K) was from On Road System sources / 28% ( $33k) was from Off Road System sources. • Largest single source of revenue from On Road System source was $63K (51% of $122k) • Largest single source of revenue from Off Road System source was $8k (6% of $122k) Looking at the tax reports that were filed: For FY2023, there was a total of 67 registered accommodations. Of those: • 30% are On Road System / 70% are Off Road System • 16 reported no income for the year • 25 reported tax liability of less than $500 for the year (average was $279) • 13 reported tax liability of $500 - $1,000 for the year (average was $742) • 10 reported tax liability of $100 - $5,000 for the year (average was $2,648) • 2 reported tax liability of $5,000-$1,000 for the year (average was $7,738) • 1 reported tax liability of more than $10,000 for the year As requested by Assembly Member Whiteside and provided by the Finance Director Page 4 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH ORDINANCE NO. FY2024-NN AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING TITLE 3 REVENUE AND FINANCE, CHAPTER 3.55 TRANSIENT ACCOMMODATIONS TAX, SECTION 3.55.010 LEVY OF SALES TAX AND SECTION 3.55.090 ADDITION OF TAX TO INCREASE THE SALES TAX PERCENTAGE FROM FIVE PERCENT TO 12 PERCENT FOR TRANSIENT AND ALL-INCLUSIVE PACKAGE ACCOMODATIONS WHEREAS, this amendment would align the Kodiak Island Borough with the City of Kodiak tax rate applied to transient accommodations and all-inclusive package accommodations. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: That Section 3.55.010 Levy of Sales Tax of the Kodiak Island Borough Code of Ordinances is amended to read as follows: 3.55.010 Levy of sales tax. A sales tax of five twelve percent of the rental charge is levied on all transient rentals for accommodations within the Kodiak Island Borough. For all-inclusive packages, a sales tax of five twelve percent will be levied on the amount of the package that is for accommodations; this amount will be substantiated in writing to the borough for approval. If a business does not have an approved substantiated rate, then the five twelve percent will be levied on 50 percent of the average daily rate of the package for each day of the stay. Any business may appeal the decision of the finance director regarding the levy of this tax pursuant to KIBC 3.55.180(D). Section 2: That Section 3.55.090 Addition of Tax of the Kodiak Island Borough Code of Ordinances is amended to read as follows: 3.55.090 Addition of tax. A. The tax collector shall add the tax imposed by this chapter to the rental charge, showing the tax as a separate and distinct item. The tax imposed on more than one separate rental may be shown as a total tax on the aggregate price of all rentals made at one time. B. The tax to be collected and remitted may be determined by multiplying the gross receipts from the services or product by X5.12. In cases of all-inclusive packages, the tax may be determined by multiplying the approved substantiated rate for accommodations by x.12. If a rate has not been approved, then the five twelve percent will be levied on 50 percent of Ordinance No. FY2024-NN Page 1 of 2 Page 5 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. the average daily rate of the package multiplied by the number of nights of accommodations provided. Effective Date: This ordinance takes effect upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2024 KODIAK ISLAND BOROUGH ATTEST: Scott Arndt, Borough Mayor Nova M. Javier, MMC, Borough Clerk Introduced by: Assembly member Whiteside and Sharratt First reading: Second reading/public hearing: VOTES: Ayes: Noes: Ordinance No. FY2024-NN Page 2 of 2 Page 6 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. Kodiak Island Borough Assembly Agenda Item Request Form PLEASE FILL OUT AND RETURN TO THE CLERK Below Are The Adopted Powers Of The Kodiak Island Borough. Circle the adopted power your request falls under. Mandatory Powers of the Assembly: • Solid Waste Collection and Disposal (non-areawide/on • Education road system) • General Administration and Finance • Parks and Recreation (non-areawide/outside cities) • Tax Assessment and Collection • Economic Development (non-areawide/outside cities) • Planning and Zoning • Animal Control (non-areawide/outside cities) • Fire Protection and First Responder Emergency • Adopted Powers of the Assembly: Medical Services (service areas) • Emergency Services Planning • Road Maintenance and Construction (service areas) • Community Health (restricted • Street Lighting (service areas) areawide) Assembly Member: Bo Whiteside, Ryan Sharratt. Date Submitted: 11/9/23 Agenda Date Requested: 12/14/23 Meeting Type: (F)NS ORM It is recommended that you turn in request at least a month prior to the meeting date requested. The Mayor retains discretion when to place items on the agenda per KIBC 2.60.0608. Description of the item you are requesting to have placed on the agenda. Please submit one form for each item and submit any applicable documents with this form. Introduction of ordinace to amend KIBC 3.55.010 and 3.55.090. Requested action of the Assembly: Discuss and vote to reject or adopt. For Staff Use: Received date: Distributed to: Mayor DPO Manager Discussed at the agenda setting on: Approved and scheduled on: WS Date: RM Date: Notes: \\dove\borough\CL\BC-05 - ASSEMBLY AGENDA PACKETS\Assembly and Public Agenda Request Forms\Assembly Agenda Item Request Form Rev.docx Page 7 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. Introduced by: Mayor Selby Requested by: Borough Clerk Drafted by: Borough Attorney Introduced: 11/26/96 Public Hearing: 12/05/96 Amended: 12/05/96 Adopted: 12/05/96 KODIAK ISLAND BOROUGH ORDINANCE NO. 96-19 AN ORDINANCE ADDING CHAPTER 3.30 TRANSIENTACCOMMODATION TAX TO THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES TO IMPLEMENT AND ADMINISTER A TRANSIENT ACCOMMODATIONS TAX WHEREAS, the Board of Directors of the Kodiak Island Convention and Visitors Bureau submitted an initiative petition to place the question of levying and collecting a tax not to exceed five percent (5%) of the amount charged persons for using transient accommodations on the October 1, 1996 election ballot; and WHEREAS, the petition has been duly certified by the Borough Clerk and approved by a majority of the qualified voters in the Kodiak Island Borough eligible to vote on the question; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: This ordinance shall take effect on the first day of January, 1997. Section 3: Title 3 of the Kodiak Island Borough Code of Ordinances is amended by adopting a new chapter 3.30 as follows: CHAPTER 3.30 Transient Accommodations Tax 3.30.010 Levy of sales tax. A sales tax of five percent (5%) of the rental charge is levied on all transient rentals for accommodations within the Kodiak Island Borough. 3.30.020 Accrual and collection. Sales taxes imposed by this chapter are due and payable by the buyer at the time of payment for the rental and are delinquent if not paid when due. Every person making rentals that are taxable under this chapter shall collect the taxes from the purchaser at the time of the rental or, with respect to credit transactions, at the time of collection of the rental fee and shall transmit the money collected on a quarterly basis to the borough. Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 1 of 13 Page 8 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. 3.30.025 Allocation of sales tax proceeds. A. The sales taxes collected under section 3.30.010 shall be allocated to a separate fund or account to be appropriated and utilized solely for increased development of the tourist industry, and may be allocated for tourism programs, tourism enhancement projects, such as beautification within the borough, and the administrative costs associated with such programs; B. The sales tax collected in any of the six (6) villages may be appropriated for the purpose of the development of the tourist industry in the village. 3.30.030 Installment payments. When the payments for a rental are made on an installment basis, the entire sales tax shall be collected from the down payment, or, if a down payment is not made or is insufficient to pay the tax, then from the entire first installment payment or payments until the tax is paid. 3.30.040 General exemptions. A. The following classes of rentals are exempt from the tax imposed by this chapter: 1. Rentals to religious and charitable organizations as defined in subsections 501 (c)(1), (3), and (4) of the Internal Revenue Code, for the conduct of regular religious or charitable functions and activities, and not for the support or maintenance of the general membership or for communal living; 2. Rentals to the United States, the State of Alaska, and any agencies or political subdivisions thereof; 3. Rentals which the borough is prohibited from taxing by the constitution or laws of the United States or the state of Alaska; 4. Rentals by businesses which provide sleeping accommodations as an incidental part of their business but do not provide transient accommodations separately as a business; i.e., fishing boat charters, guide operations not based in a lodge that also sells lodging, and similar services; 5. Rentals to nonprofit organizations operated primarily for the purpose of planning, promoting, and conducting organized group activities for participants who are eighteen (18) years of age or less; and 6. Rentals for accommodations located within a municipality which levies and collects a sales tax on transient room rentals. No certificate is required for the exemption provided by this subsection. 3.30.045 Partial exemption. A business that provides transient accommodations separately in the normal course of business, shall collect the tax on the estimated value of the rentals included in any package sales which include other services such as guiding or transportation. 3.30.055 Senior citizens exemption. A. A person sixty-five (65) years of age or older who has resided in the Kodiak Island Borough for a continuous period of thirty (30) days or more may obtain a senior citizens sales tax exemption certificate by submitting a completed application to the finance director on a form provided by the borough. The application must be signed Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 2 of 13 Page 9 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. by the applicant under oath and shall contain information relating to the applicant's residence, marital status, rental or ownership of occupied dwelling, persons occupying the dwelling, and other information reasonably necessary to determine the applicant's eligibility and monitor the use of the exemption certificate. The applicant shall also submit for inspection and copying a birth certificate, or other evidence determined by the finance director to be adequate, to establish the applicant's age. The exemption certificate shall be issued without charge in the name of the applicant and shall be valid for a period of three (3) years. B. An exemption certificate issued to a person who is prevented or impaired from personally making purchases or payments by a physical or mental infirmity may designate not more than two (2) other persons who shall be authorized to utilize the certificate when making purchases and payments on behalf of and for the sole use and benefit of the certificate holder or the certificate holder's spouse. C. No person may utilize a senior citizen tax exemption certificate to purchase or acquire rentals that are to be utilized by a person or persons other than the certificate holder, the certificate holder's spouse, a dependent of the certificate holder, or another person or persons who would be qualified to have a senior citizens exemption certificate issued to them under this section. As used in this section, "dependent" means a child of the certificate holder or the certificate holder's spouse who resides with the certificate holder when not attending school and who receives more than one-half (%) of his or her support from the certificate holder. 1. Notwithstanding any other provisions of this chapter no person may utilize a senior citizen tax exemption certificate to rent a room which will be used in a commercial business or enterprise or for the production of income. 2. Persons making rentals to or for the benefit of a senior citizen which are exempt from tax under the provisions of this section shall confirm the identity of the person or persons presenting an exemption certificate, if not personally known to them, by requesting identification and shall maintain records of each such exempt rental with an appropriate reference to the senior citizen exemption certificate number. If the person making the rental has reason to believe that it is not for use by a senior citizen or other qualified user, because of the volume, type of purchase, or other facts, that person shall promptly report the possible fraudulent use of the exemption certificate to the borough finance director. The finance director shall investigate the rental, and if the finance director determines that the exemption certificate is being abused, the matter shall be referred to the mayor who shall conduct such further investigation as is determined necessary and present the facts to the assembly for authorization to initiate prosecution or revocation action, or both. 3. Senior citizens' exemption certificates shall be subject to revocation as provided in section 3.30.070 of this chapter. 3.30.060 Certificate of exemption. A. A person entitled to the exemption under section 3.30.040 shall apply to the borough for a certificate of tax exemption which will be issued without charge to qualified persons. The application shall be submitted on a form provided by the borough finance office and shall contain the name, address, type of organization, the section under which the exemption is claimed, and such other information as is Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 3 of 13 Page 10 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. required by the finance department. Duplicate certificates will be issued on request. B. The certificates of exemption shall be valid for a period of one (1) year and the expiration date shall be printed on the face of the certificate. Exemption certificates may be renewed annually, without charge, by completing an application form containing information required to assess the continued existence of the exemption. 3.30.070 Revocation of certificate of exemption. A. A certificate of tax exemption may be revoked by the mayor for any of the following acts or omissions: 1. Falsification of any statement or information in the application for certificate of exemption; 2. Utilization of the tax-exempt certificate for the purchase or acquisition of nonexempt rentals; 3. Knowingly or negligently permitting or authorizing the use of the certificate by a person other than an authorized agent or employee of the person or entity to whom the certificate was issued. B. Prior to revocation of a certificate, the holder of the certificate shall be provided with notice of the alleged violation not less than ten (10) days prior to the proposed effective date for revocation of the exemption certificate. The person or entity to whom the certificate was issued may request a hearing before the mayor regarding the alleged violation by filing a written request with the mayor prior to the effective date for revocation. If requested, the hearing shall be held within twenty (20) days after the date of receipt of the request, and the exemption certificate shall not be revoked prior to the date of hearing. C. A decision of the mayor revoking an exemption certificate may be appealed to the assembly by filing a written notice of appeal with the borough clerk within ten (10) days after receipt of the decision. The hearing on the appeal shall be scheduled before the assembly at a regular or special meeting held within thirty (30) days after receipt of the notice of appeal. The assembly may, in its discretion, hear the matter either on the record or de novo. If the appeal is heard de novo, no evidence may be presented before the assembly which was not presented before the mayor. D. If an exemption certificate is revoked, a new certificate may not be issued to the same person or entity for a period of two (2) years from the date of revocation. E. The revocation provided by this section is in addition to any other penalties provided by law for the violations. 3.30.080 Tax collectors registration certificate. A. All persons engaged in selling or renting property subject to the tax imposed by this chapter shall file an application for a certificate of registration not later than the date of commencing business in the borough or opening a place of business within the borough. An application for a new business not previously registered to collect sales taxes shall be accompanied by a one hundred dollar ($100) deposit, or, in the case of a person who does not maintain a permanent place of business within the borough or who is not a local resident residing within the Kodiak Island Borough, a two hundred dollar ($200) deposit which the registrant may recover by a deduction from the remittance submitted with the first quarterly return filed or, if that return is Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 4 of 13 Page 11 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. insufficient, the balance shall be refunded. If applicant has established credit with the borough, the finance director may waive the required deposit. B. Upon receipt of a properly executed application, on a form provided by the finance director, accompanied by the required deposit, the finance director shall issue the applicant a certificate of registration, stating the address of the place of business to which it is applicable and authorizing such person to collect the sales tax. The certificate shall be prominently displayed at the place of business named on the certificate. C. The certificate of registration is nonassignable and nontransferable, and must be surrendered to the finance director by the person or entity to whom it is issued upon cessation of business at the location named in the certificate. If the business is continued at the same location but there is a change in its business form, the certificate holder making such change shall surrender the old certificate to the finance director for cancellation and the successor organization shall apply for a new certificate of registration. Upon receipt of such application properly executed, a new certificate bearing a new number will be issued to such successor. D. When there is a change of address for the certificate holder's place of business, a new certificate of registration is required, bearing the same registration number, showing the new address. E. An applicant for a new certificate required to reflect a change in business form or a change of address for an existing certificate holder is not required to post a deposit with the application. 3.30.082 Failure to obtain registration certificate. A. It shall be unlawful for any person to engage in, or continue in, business within the borough or to conduct activities within the borough unless and until such person obtains a certificate of registration. In the event the finance director ascertains that any such person is engaging in, or continuing in, business within the borough without a certificate of registration, one (1) or more of the following remedies may be sought: 1. Conduct a special audit of such person's records and make a demand upon such person to obtain a sales tax certificate, in which case such person who has engaged in business or activities within the borough without a certificate shall pay a special fee to reimburse the borough for the expense of the audit, which fee shall be the lesser of the sum of one thousand dollars ($1,000) or ten percent (10%) of any tax found to be due. However, the fee may be waived at the discretion of the finance director for good cause shown. The finance director shall also assess any delinquencies, and applicable penalties and interest, if any, against such person, if such person engaged in rentals which were or are subject to the borough sales tax. 2. Report the facts to the borough attorney for appropriate action. 3.30.090 Addition of tax. A. The tax collector shall add the tax imposed by this chapter to the rental charge, showing the tax as a separate and distinct item. The tax imposed on more than one (1) separate rental may be shown as a total tax on the aggregate price of all rentals made at one time. Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 5 of 13 Page 12 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. B. The tax to be collected and remitted may be determined by multiplying the gross receipts from the services or product by .05 and dividing that product by 1.05. 3.30.100 Assumption of tax prohibited. No person may advertise or state to the public, or to any tenant directly or indirectly, that the tax imposed by this chapter or any part thereof will be assumed or absorbed by that person, or that it will not be added to the charge, or that it will be refunded; nor may any person assume, absorb, or fail to separately state the tax to the tenant unless otherwise specifically authorized by this chapter. 3.30.110 Tax schedule. The amount of the tax to be added to the rental charge for transient room rentals shall be determined in accordance with the following schedule: Charge Tax Under 5 cents None $.05 through $.17 $.01 .18 through .30 .02 .31 through .50 .03 .51 through .89 .04 .90 through 1.09 .05 Over $1.10 Continue on same scale 3.30.120 Maximum taxable sale. A. If the charge for rental of any property exceeds five hundred dollars ($500) for a single transaction, that portion of the price or charge in excess of five hundred dollars ($500) shall be exempt from the tax levied by this chapter. B. In determining the maximum tax payable with regard to a single transaction for rentals, each day shall be deemed a separate service transaction. The maximum tax payable shall be applicable to each deemed service transaction with tax payments to accrue and become payable at the time of filing the next quarterly return to be submitted following receipt of payment for the service. 3.30.130 Title to tax proceeds. The title to the taxes collected pursuant to this chapter shall vest in the borough upon collection by the tax collector. 3.30.140 Sales tax returns. A. Each person who rents property taxable under this chapter in any quarter ending March 31, June 30, September 30, and December 31 shall, on or before the last day of the month following the end of each quarter year, or April 30, July 31, October 31, and January 31 respectively, complete, sign, and file with the borough a return for that quarter, upon forms furnished by the borough, setting forth the following: 1. The amount received from all rentals made within the borough; 2. The amount received from nontaxable rentals, with a brief explanation of the nontaxable status; 3. The amount received from taxable rentals; 4. The amount of tax attributable to the taxable rentals; Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 6 of 13 Page 13 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. 5. The taxes collected; and 6. Such other information and supporting papers as the finance director may require in the reporting form. B. The taxes collected shall be remitted with the reporting form after deducting any administrative fees that may be allowed by section 3.30.160. C. If the last day of the month is a Saturday, Sunday, or legal holiday, tax returns and remittances shall be considered filed on time if delivered or postmarked on or before the last day of that month. D. A person making rentals within the borough shall make a return, even though none of the reported transactions are taxable. E. A person who fails to timely comply with the provisions of this chapter relating to the filing of quarterly reports and remittance of taxes collected for any one (1) quarter during a calendar year shall, if required by written notice from the finance director, file the required reports and transmit collected sales taxes monthly until such time as the finance director determines that a willingness and ability to comply with the requirements of this chapter has been established. Monthly reports and remittances shall be due on the fifteenth (15th) day of each month following the month of collection. Any person may, upon notification to the finance director, file reports and transmit taxes monthly. F. A person doing business within the borough for a period of time that is expected to be, less than six (6) months in duration shall file sales tax returns and remit taxes on a monthly basis as provided in subsection E of this section. G. A final sales tax return shall be filed and the tax due remitted within fifteen (15) days after the date of selling or terminating a business. The purchaser of the business shall withhold a portion of the purchase money sufficient to pay any sales tax, penalties, and interest that may be due until seller displays a receipt from the borough evidencing total payment of the tax, interest, and penalties due. If the purchaser fails to withhold the required sum from the payment due to the seller, the purchaser shall also be liable for the taxes, penalties, and interest owed by the seller to the borough. 3.30.150 Credit for taxes. A person who has collected and remitted a tax on a borough rental, which tax is subsequently determined not to be due because a refund is granted for cancellation, payment is refused on a check received in conjunction with a rental, or similar circumstances, may take a credit against future taxes. Proper documentation shall be made available by the tax collector, on request, to substantiate the credit taken. 3.30.160 Administrative costs and reimbursements. To compensate renters for keeping the sales tax records and filing returns as required by this chapter and making prompt remittances, those persons shall be entitled to a fee equal to two percent (2%) of the amount of the tax collected, and that amount may be deducted when making remittances; provided that the reports and remittances are postmarked on or before the due date for such reports and remittances. A person filing a report or remitting taxes collected after the due date forfeits the right and claim to the fee provided by this section and shall remit the entire tax due. Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 7 of 13 Page 14 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. 3.30.170 Penalty and interest. A. A person who fails to remit taxes collected on or before the due date shall pay, in addition to the tax due, a penalty of five percent (5%) of the tax that is then due and unpaid for each month or any fraction of a month during which any part of the tax remains unpaid until a total penalty of twenty percent (20%) has accrued, which penalty shall be added to all returns until the tax, penalty, and interest have been paid. For the purposes of this section, partial payments shall be credited first to penalty and interest and then to the tax obligation originally due. B. Taxes that are not remitted to the borough when due shall draw interest from the date of delinquency until paid at the rate of fifteen percent (15%) per year. Interest shall not accrue on the late payment penalty assessed by subsection A of this section, but shall accrue on the civil penalty assessed by section 3.30.190. 3.30.180 Determination of exemptions. A. Every rental made within the borough, unless explicitly exempted by ordinance, is presumed to be subject to the tax imposed by this chapter. B. A tenant who claims an exemption under a provision of this chapter for which a certificate of exemption is required shall display the certificate at the time of the rental and the certificate number shall be noted on the receipt, invoice, or other evidence of the transaction. C. A tenant who believes the tax has been charged in error may make a claim to the borough for refund within thirty (30) days after the date of the rental. D. If the finance director denies a refund of the tax, the taxpayer may appeal to the mayor by filing a written notice of appeal, within ten (10) days after the finance director's decision, setting forth all facts relating to the claimed exemption. The mayor shall provide an opportunity for a hearing within thirty (30) days after the receipt of the notice of appeal. 3.30.190 Failure to collect taxes. A. A person required by this chapter to collect sales taxes levied, who fails to collect such taxes on taxable transactions, shall be assessed with a civil penalty of double the tax that should have been collected, as determined by an audit. B. If any of the following defenses are established, the civil penalty imposed by this section shall be waived: 1 . The securing, in good faith, of a certificate of exemption or a statement of eligibility for exemption from the person against whom the tax would have been levied; 2. Proof of a belief, based upon advice of legal counsel or the borough finance director, that the rental was not subject to the tax levied by this chapter, accompanied by proof of notification in writing to the mayor based on such belief prior to or immediately following the transaction; 3. A reasonable attempt, in good faith, to collect the tax from the buyer. C. A renter who fails to pay the tax levied by this chapter on a taxable transaction shall be assessed with a civil penalty of double the taxes that should have been paid. D. The civil penalties imposed by this section shall be in addition to any other civil or criminal penalties imposed by this chapter. Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 8 of 13 Page 15 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. 3.30.200 Preservation of records collection of arrears tax. A. Every person required by this chapter to collect and remit taxes shall keep and preserve suitable records of the rentals, together with invoices, bills of sale and other pertinent records and documents which may be necessary to determine the amount of the tax due under this chapter and to substantiate the information provided in filed returns. The records required to be maintained shall be preserved for not less than three (3) years after the remittance of the taxes and shall be subject to examination by the borough finance director or any other authorized employee of the borough while engaged in reviewing or auditing the records of any taxpayer required to make a return under the provisions of this chapter. The borough shall give written notice of intent to conduct an audit under this section not less than five (5) days prior to the audit. B. Collection of arrears tax by the borough shall be limited to the period of three (3) years prior to the date when the finance director or authorized agent began an audit of the taxpayer's records, wrote to the person through use of regular mail concerning an apparent violation of this chapter, or took some other recorded action to require a certificate of registration or other compliance with this chapter. 3.30.210 Estimated tax. If the borough is unable to ascertain the correct tax to be paid by a seller because of the failure or refusal of the seller to file a return, keep accurate records, or allow their inspection, or because a return has been falsified, the borough may prepare an estimate of the tax due based on any information that may be available. Notice of the estimated tax shall be provided to the seller and shall become final for the purpose of establishing the tax liability unless the seller, within thirty (30) days after receipt of notice of the estimated tax, files an accurate return supported by records determined by the finance director to be satisfactory, establishing a lesser liability. 3.30.220 Returns confidential. Except in connection with official investigations or proceedings of the borough, whether judicial or administrative, involving taxes due under this chapter, no officer, employee, or agent of the borough may divulge any information disclosed in a report or return filed under this chapter. The prohibition of this section shall not prohibit the preparation and use of statistical summaries of sales tax data that do not disclose the identity of any person filing reports required by this chapter. 3.30.222 Corrections of errors on tax returns. If the taxpayer makes an error or errors in computing the tax on a return, the finance director or authorized agent, shall correct such error or errors and immediately notify the person filing the return by ordinary mail that such correction has been made. Any additional tax due, together with applicable penalty and interest in accordance with section 3.30.170, for which the taxpayer becomes liable shall be payable immediately by the taxpayer. If the taxpayer makes an error which results in overpayment of tax, the finance director shall allow credit against taxes due on future returns, or shall authorize a refund in accordance with section 3.30.224. 3.30.224 Refund of overpayment. The finance director, or authorized agent, shall refund overpayment of taxes brought about by mathematical errors in the return or reports filed by the person remitting the tax; computational errors made by the remitter or borough Kodiak Island Borough, Alaska Ordinance No. 96-19 Page 9 of 13 Page 16 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. personnel with respect to said return or reports; duplicate payments by remitter; or any overpayment made by a person filing a tax return that may be determined as a result of an audit of such person's records; provided, however, that in no event shall the remitter of sales taxes be entitled to a refund for overpayment of sales taxes where the overpaid taxes have actually been collected by said person. In the event the amount of overpayment is one hundred dollars ($100) or less, a cash refund may be authorized at the discretion of the finance director. In no event shall there be a refund for overpayment that were made more than three (3) years prior to the discovery of the overpayment by the person filing the returns or the finance director or authorized agent. 3.30.226 Protest of Tax. A. A buyer who protests the payment of the tax levied under this chapter shall pay the tax and shall provide the seller and the finance director with a written statement of protest within five (5) working days of the sale that identifies the sale, rental or service that is the subject of the tax protested, the amount of tax paid, the buyer's and seller's name, mailing address, telephone number and the basis for the protest. B. If the seller protests his liability on an assessment under section 3.30.210 which has become final, he shall pay the tax under written protest setting forth the basis for the protest. No action for a refund may be maintained nor may a defense to nonpayment be maintained in a civil action unless the amount in dispute has been paid by the seller under written protest filed at or before the time of payment. 3.30.230 Recovery of taxes. Taxes due but not paid may be recovered by the borough in an action against the tenant if that person has failed or refused to pay the tax on request by the seller or submitted a false certificate of exemption. Taxes collected but not transmitted and taxes not requested or demanded by the person charged with the duty of collecting of tax may be recovered by an action against the person renting the property. 3.30.240 Lien for tax, interest, and penalty. A. The tax, interest, and penalty imposed under this chapter and the lien filing fee under subsection B of this section shall constitute a lien in favor of the borough upon all real and personal property of every person required to collect and remit the tax. The lien arises at the time of delinquency and continues until liability for the tax is satisfied or the property of the delinquent person is sold at foreclosure sales. The lien has priority over all other liens and encumbrances except those for property taxes and special assess- ments; provided, however, that the lien is not valid as against a person in the position of a prior mortgagee, pledgee, or judgment creditor until notice of the lien is filed in the office of the recorder for the Kodiak Recording District in the manner provided for federal tax liens in AS 43.10.090 through 43.10.150 and the lien is not valid against a purchaser who, prior to the recording of it, in good faith and without actual notice of the lien or the underlying tax liability, has acquired for fair market value an interest in property otherwise subject to the lien. Upon recordation a copy of the lien shall be sent to the last known address of every person named in the lien. Failure to comply with this requirement shall not, however, affect the validity of the lien or the borough's right or authority to foreclose upon it. Kodiak Island Borough, Alaska Ordinance No. 96-19 Paye 10 of 13 Page 17 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. B. Fees for the filing and releasing of liens authorized by this section shall be established by resolution of the assembly. 3.30.250 Foreclosure against real property. A lien for the tax, interest, and penalties created by this chapter may be foreclosed, when authorized by the assembly, by commencement of an action in the superior court pursuant to the procedure set forth in AS 09.45.170 220. 3.30.260 Collection by distraint and sale. A. The borough may collect taxes, with interest, penalties, and other additional amounts permitted by law, by distraint and sale of the property of the person liable to pay the taxes, interest, penalty or other additional amount, who neglects or refuses to pay them within ten (10) days after receipt of notice and demand for payment. B. In case of neglect or refusal to pay taxes or deficiencies as provided in this section, the finance director may obtain a warrant authorizing the finance director to levy upon, seize, and sell any property, except exempt property, belonging to the person for the payment of the amount due, with interest and penalty. When distraint is made as provided in this section, the finance director shall make an inventory of the property served and leave a signed copy of that inventory with the owner or possessor of the property, or at the dwelling or usual place of business, if a person of suitable age and discretion can be found, or if the taxpayer is a corporation or other type of organization with an officer, manager, general agent, or agent for process, with a notation of the amount demanded and the time and place of sale. C. The finance director shall immediately publish a notice of the time and place of sale at public auction, together with a description of the property distrained, in a newspaper published in the borough and post a copy of the notice at the post office nearest the place where the sale is to be made. D. The time of sale shall be not less than fifteen (15) or more than sixty (60) days from the date of the notification to the owner or possessor of the property, and the place proposed for the sale shall not be more than five (5) miles from the place of making the distraint. The sale may be continued from time to time in the discretion of the finance director, but not for more than thirty (30) days after the date specified in the notice. E. The property distrained shall be restored to the owner or possessor if, before the sale, payment of the amount due is made to the finance director charged with the collection, together with the fees and other charges. F, The finance director shall give to the purchaser a certificate of sale on payment in full of the purchase price. The certificate of sale: 1. Is prima facie evidence of the right of the finance director to make the sale, and conclusive evidence of the regularity of the proceedings in making the sale; 2. Transfers to the purchaser all right, title, and interest of the delinquent taxpayer in and to the property sold; 3. Where the property consists of stock, is notice, when received, to the corporation to record the transfer on their books and records in the same manner as if the stock were transferred or assigned by the party holding the stock in lieu of an original or prior certificate, which is void, whether cancelled or not; and Kodiak Island Borough, Alaska Discussion Of Changing The Transient Accommodations Tax Ordinan cc No. 96-19 Page 11 of 13 Page 18 of 129 AGENDA ITEM #2.a. 4. Where the subject of the sale is security or other evidence of debt, is a good and valid receipt to the person holding it, as against a person holding or claiming to hold possession of the security or other evidence of debt. G. If property seized and sold is not sufficient to satisfy the claim of the borough for which distraint or seizure is made, the finance director may, thereafter, and as often as is necessary, proceed to seize and sell in like manner any other property subject to the lien created by this chapter until the amount due from the taxpayer together with all expenses is fully paid. H. A person in possession or control of property subject to distraint, upon which a levy is made, shall, upon demand by the finance director making the levy, surrender the property to the finance director, unless the property is, at the time of the demand, subject to an attachment under judicial process. A person who fails or refuses to so surrender the property is personally liable to the borough for a sum equal to the value of the property not so surrendered, but not exceeding the amount of the taxes or deficiencies, including penalties and interest for the collection of which levy is made, together with costs and interest from the date of the levy. I. All persons shall, on demand of a police officer about to distrain or having distrained on property or rights of property, exhibit all books containing evidence or statements relating to the property liable to distrain for the tax due. J. The provisions of this chapter are not exclusive but are in addition to all other existing remedies provided by law for the divorcement of a levy and collection of taxes of the borough. 3.30.270 Prohibited acts. A. No person may: 1. Fail or refuse to file a completed tax return required by this chapter, upon demand or falsify any material statement in that return; 2. Fail or refuse to collect taxes levied by this chapter and remit those taxes to the borough as required; 3. Conduct any business in the borough relating to rentals subject to taxation under this chapter without first applying for and obtaining a certificate of registration to collect the taxes imposed on rentals; or 4. Falsify any portion of an application for a certificate of exemption. 3.30.280 Definitions. A. As used in this chapter the following definitions shall apply: 1. "Accommodations" mean a structure or portion of a structure which is occupied or intended for occupancy by transients for dwelling, lodging, or sleeping purposes. This term includes hotels, motels, tourist homes, houses or courts, lodges, lodging houses, inns, rooming -houses, youth hostels, trailers, bed and breakfasts, and dormitories. This term does not include any hospital, medical clinic or nursing home. 2. "Buyer" or "purchaser" means a person who acquires an interest in real or personal property, or the right to use real or personal property, or who acquires services for consideration. 3. "Charitable organization" means an organization having as its primary purpose relief of the poor and distressed or of the underprivileged. Kodiak Island Borough, Alask++ Ordin, nc,, No. 96-19 Faye 12 of 13 Page 19 of 129 Discussion Of Changing The Transient Accommodations Tax AGENDA ITEM #2.a. 4. "Rental" means permitting the use or occupancy of real or personal property for consideration other than by means of a capital lease. 5. "Residential unit" means one or more rooms and a single kitchen in a dwelling designed as a unit for occupancy by not more than one (1) family for living or sleeping purposes. 6. "Residential uses" means for use within a residential unit. 7. "Sale" means a transfer or exchange of any property of every kind and description, or the right to use or occupy such property, for consideration. 8. "Sales price" or "charge" means the consideration, whether money, credit, or other property or interest in property, without deduction for delivery costs, taxes, or any other expense. The receipt of property or an interest in property as consideration, the "sales price" or "charge" shall be based on the fair market value of the property or interest in property. 9. "Seller" means a person, whether acting as a principal, agent, or broker, who sells, leases, or rents real or personal property or provides services to another for consideration. 10. "Transient" means a person who occupies or rents and has available for the person's own occupancy or occupancy by any other person a suite, room or rooms in a hotel -motel for fewer than thirty (30) consecutive days. An employee who occupies or has available for fewer than thirty (30) days a suite, room or rooms rented c1r leased for more than thirty (30) consecutive days by an employer for use on a roti+ring basis ny employees is not a transient. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTH DAY OF DECEMBER, 1996 ATTEST: �Dorina F. Smith,CMC/AAE, Borough Clerk Kodiak Island Borough, Alask. Discussion Of Changing The Transient Accommodations Tax KODIAK ISLAND BOROUGH Jer e M. Selby, Borough Robin Heinrichs, Presiding Officer Ordin.n�a: No. 96-13 P"p. 13 of 13 Page 20 of 129 AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT FEBRUARY 8, 2024 4 ' x ASSEMBLY WORK SESSION SUBJECT: Proposed Code Revisions To KIBC 2.125.030 And KIBC 2.125.040 Architectural/Engineering Review Board ORIGINATOR: Ryan Sharratt, Borough Assembly RECOMMENDATION: For discussion of the Assembly to determine whether or not to introduce an ordinance to make the requested changes to KIBC 2.125 Architectural/Engineering Review Board. DISCUSSION: This item was requested by Assembly member Sharratt to discuss amending KIBC 2.125.030 Qualifications and KIBC 2.125.040 Responsibilities. Per KIBC 2.30.070 (N), the Assembly may amend, repeal, rescind, or reconsider an ordinance by enacting another ordinance. After discussion, the Assembly may: • Direct the Clerk to place this item for introduction at an upcoming meeting. Attached is a DRAFT version of the ordinance prepared by the Clerk's Office. • Refer the DRAFT ordinance for review by the Board members. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 21 of 129 Proposed Code Revisions To KIBC 2.125.030 And KIBC 2.125.040 Architectur... AGENDA ITEM #2.b. CLERK'S DRAFT 1 KODIAK ISLAND BOROUGH 2 ORDINANCE NO. FY2024-NN 3 4 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING 5 TITLE 2 ADMINISTRATION AND PERSONNEL, CHAPTER 2.125 6 ARCHITECTURAL/ENGINEERING REVIEW BOARD, SECTION 2.125.030 QUALIFICATIONS 7 AND 2.125.040 RESPONSIBILITIES 8 9 WHEREAS, this ordinance reflects the recently updated qualifications of those who serves on 10 different boards, committees, and commissions; and 11 12 WHEREAS, this ordinance adds the City of Kodiak manager or their designee as a nonvoting 13 ex -officio member on the board; and 14 15 WHEREAS, this ordinance expounds on the responsibilities of the board. 16 17 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 18 BOROUGH that: 19 20 Section 1: This ordinance is of a general and permanent nature and shall become a part of the 21 Kodiak Island Borough Code of Ordinances. 22 23 Section 2: That Section 2.125.030 of the Kodiak Island Borough Code of Ordinances is amended 24 to read as follows: 25 26 2.125.030 Qualifications. 27 28 Seven members of the board shall meet the qualifications in KIBC 2.100.040 he rosir,oAt's a;hd 29 qualified yetors of the h„rou ,h and shall have an interest and a wide range of experience in 30 engineering, architecture, building, plumbing, roofing, electrical installation, and other related 31 fields involving the building business. The borough manager, the City of Kodiak manager or their 32 designee, appointed assembly member representative, school district superintendent, or their 33 designees, and a school board representative shall be nonvoting ex officio members of the board 34 and may participate in all discussions. 35 36 Section 3: That Section 2.125.040 of the Kodiak Island Borough Code of Ordinances is amended 37 to read as follows: 38 39 2.125.040 Responsibilities 40 41 The board is empowered to: 42 43 A. Review all architectural and engineering proposals and design drawings for borough - 44 owned buildings and publicly funded projects above the Kodiak Island Borough manager's Ordinance No. FY202N-NN Page 1 of 2 Page 22 of 129 Proposed Code Revisions To KIBC 2.125.030 And KIBC 2.125.040 Architectur... 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 82 83 84 85 86 87 88 AGENDA ITEM #2.b. spending authority, evaluate and propose improvements to specifications and drawings, and conduct evaluationse and interviewsthe lost of proposed architects and engineers #e with recommendations to the Assembly. A plan review schedule shall be established with the architect, which takes into consideration the limited building season available in Kodiak; B. Evaluate all comments, suggestions, and recommendations from the building administration on proposals for borough and other publicly funded buildings and forward written comments to the assembly; C. Hold a public meeting before presenting the final recommendation to the assembly; D. Forward final recommendations to the assembly; E. Receive notice of all change orders that are executed on building projects. The board shall review all changes to borough -owned buildings and publicly funded projects for the purpose of possible inclusion in future building projects; and F. Evaluate completed projects, prior to the one-year warranty inspection, on the basis of quality of workmanship, cost of project relative to its original budget, and performance of the architect and the general contractor to prepare a written report for presentation to the assembly. Effective Date: This ordinance takes effect upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2024 KODIAK ISLAND BOROUGH Scott Arndt, Borough Mayor Introduced by: Assembly member Sharratt First reading: Second reading/public hearing: VOTES: Ayes: Noes: Ordinance No. FY202N-NN ATTEST: Nova M. Javier, MMC, Borough Clerk Page 2 of 2 Page 23 of 129 Proposed Code Revisions To KIBC 2.125.030 And KIBC 2.125.040 Architectur... Kodiak Island Borough Architectural/Engineering Review Board (KIB-ARB) Proposed Code Revision KIBC 2.125.030 AGENDA ITEM #2.b. Seven members of the board shall be residents and qualified voters of the borough and shall have an interest and a wide range of experience in engineering, architecture, building, plumbing, roofing, electrical installation, and other related fields involving the building business. The manager, appointed assembly member representative, school district superintendent, or their designees, and a school board representative as well as the City of Kodiak Manager, or their designees shall be nonvoting ex officio members of the board and may participate in all discussions. [Ord. FY2013-08 §2, 2013; Ord. 98-02 §8, 1998; Ord. 95-03 §2, 1995; Ord. 87-33-0 §2, 1987. Formerly §2.45.030]. KIBC 2.125.040 The board is empowered to: A. Review all architectural and engineering proposals and design drawings for borough -owned buildings and publicly funded projects above the Kodiak Island Borough Managers spending authority, evaluate and propose improvements to specifications and drawings, and conduct evaluations and interviews evakuate the last of proposed architects and engineers and ferward a with recommendations to the Assembly. A plan review schedule shall be established with the architect, which takes into consideration the limited building season available in Kodiak; B. Evaluate all comments, suggestions, and recommendations from the building administration on proposals for borough and other publicly funded buildings and forward written comments to the assembly; C. Hold a public meeting before presenting the final recommendation to the assembly; D. Forward final recommendations to the assembly; E. Receive notice of all change orders that are executed on building projects within fifteen calendar days. The board shall review all changes to borough -owned buildings and publicly funded projects for the purpose of possible inclusion in future building projects; and F. Evaluate completed projects, prior to the one-year warranty inspection, on the basis of quality of workmanship, cost of project relative to its original budget, and performance of the architect and the general contractor to prepare a written report for presentation to the assembly. [Ord. 97-20 §2, 1997; Ord. 95-03 §2, 1995; Ord. 87-33-0 §2, 1987. Formerly §2.45.040]. Page 24 of 129 Proposed Code Revisions To KIBC 2.125.030 And KIBC 2.125.040 Architectur... AGENDA ITEM #2.b. Kodiak Island Borough Assembly Agenda Item Request Form PLEASE FILL OUT AND RETURN TO THE CLERK Below Are The Adopted Powers Of The Kodiak Island Borough. Circle the adopted power your request falls under. Mandatory Powers of the Assembly: . Solid Waste Collection and Disposal (non-areawide/on • Education road system) • General Administration and Finance • Parks and Recreation (non-areawide/outside cities) • Tax Assessment and Collection • Economic Development (non-areawide/outside cities) • Planning and Zoning • Animal Control (non-areawide/outside cities) • Fire Protection and First Responder Emergency • Adopted Powers of the Assembly: Medical Services (service areas) • Emergency Services Planning • Road Maintenance and Construction (service areas) • Community Health (restricted . Street Lighting (service areas) areawide) r Assembly Member: `� , KQ.MKV-T' Date Submitted: Z • I 202 •-1 Agenda Date Requested: ASAP Meeting Type: AA W WS ( ) RM It is recommended that you turn in request at least a month prior to the meeting date requested. The Mayor retains discretion when to place items on the agenda per KIBC 2.60.0608. Description of the item you are requesting to have placed on the agenda. Please submit one form for each item and submit any applicable documents with this form. 'RQNISI ON_ To K 1 lit' 2.125. o30 - 5C E ATTeC H E p . Requested action of the Assembly: U15CUS5 ANf--,, MOVE To JZF-&ULAC MEAL-171AA ($ A VOTE, For Staff Use: Received date: 2,1 .,20� Distributed to: Mayor • I * � PO Z 7-4 ( Manager Discussed at the agenda setting on: 2. Z • Z� Approved and scheduled on: WS Date: 7. RM Date: N/A Notes: C:\Users\iarellano\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\DTJFKJZT\Assembly Agenda Item Request Form Rev.docx Page 25 of 129 Proposed Code Revisions To KIBC 2.125.030 And KIBC 2.125.040 Architectur... AGENDA ITEM #2.c. KODIAK ISLAND BOROUGH STAFF REPORT FEBRUARY 8, 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 Consideration And Discussion To Change The Travel Policy Page 26 of 129 AGENDA ITEM #2.c. 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 Page 27 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 28 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 Page 29 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 Page 30 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 31 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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. i) 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: http://doa.alaska.gov/dof/travel/fags.html KIB Travel Policy 61 Page Page 32 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 33 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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. RESOURCES Defense Travel Management Office: htti)s://www.travel.dod.mil/Travel-Transportation-Rates/Per- Diem/#:-:text=Per%20diem%20is%20a%20set,while%20on%20official%20government %20travel. State of Alaska: https:Hdoa.alaska.gov/dof/payroll/traveltime.html U.S. Department of Labor: https://www.dol.gov/qeneral/topic/workhours/traveltime U.S. General Service Administration: https://www.gsa.gov/travel/plan-book/per- diem-rates/frequently-asked-questions-per-diem#1 KIB Travel Policy 8 1 P Page 34 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. fIIE1r[L\9II The Borough will be responsible for purchasing lodging and transportation for employees who are traveling out of town on official business. The Borough will reimburse the employee for local transportation such as ride services (Uber, Lyft, taxi, public transportation) upon submission of a payment request with a copy of receipts and the executed Travel Authorization. Employees will be paid a per diem for meals equal to the amount listed in the current US Government Services Administration (GSA) agency schedule. It should be noted that for non-contiguous states (Alaska and Hawaii) the GSA uses the Department of Defense Rates. These rates can be found on the Federal Government web site at http://www.gsa.gov. The federal government regulations also specify that on the first and last day of travel, per diem will be 75% of the daily rate. When an employee is on official business beyond their normal work hours and not requiring an overnight stay, per diem will be 75% of the daily rate. The Borough and its employees are expected to make every effort to minimize the cost of travel. The Borough will not pay for first class air travel, gourmet meals, alcoholic beverages, party expenses, plush hotel suites, etc. Before embarking on any travel and prior to submitting travel -related payment requests, employees must submit a Travel Authorization Form. In the event that an accommodation is found to be unavailable upon arrival, and payment cannot be made by the Borough, reimbursement may be requested for hotel rooms with proper receipt submittal. An advance for per diem can be requested no sooner than two weeks prior to travel. 1115 STRANDED WHILE ON BOROUGH TRAVEL If due to inclement weather or other adverse conditions, employees traveling on Borough business become stranded away from their Kodiak office location the following will apply: a. The employee will not suffer a reduction in wages or benefits as a result of being unable to return to his/her principal work location. b. The employee will be provided with room, per diem as outlined in Section 1114 above, and necessary transportation at the Borough's expense. C. The Borough will reimburse the employee for any other reasonable, necessary expenses they would not normally have incurred had they been in Kodiak. An example of such an expense would be reimbursement for any childcare expenses that might result from the employee being stranded away from Kodiak. Approved by Ordinance No. FY2024-06 Consideration And Discussion To Change The Travel Policy 51 Page 35 of 129 AGENDA ITEM #2.c. The above will not be reimbursable if an employee has extended his/her travel time in any way for personal reasons and becomes stranded due to taking a later flight than would have been required when the Borough business was completed. 1116 SAFETY It is a fundamental responsibility of the Borough to provide a safe work environment for its employees. It is a fundamental responsibility of the employees to abide by all safety rules and regulations and to continuously practice safety while performing their duties. The Borough will furnish such safety devices and first aid kits as may be needed for the safety and proper emergency medical treatment of employees. Employees shall use personal protective equipment as may be prescribed by state or federal standards or the Borough. It is the responsibility of each employee to report any unsafe situation to the supervisor immediately upon recognition of the unsafe situation. 1117 SAFETY COMMITTEE A safety committee composed of at least two (2) representatives from the non- management staff members and at least two (2) representatives from the management staff members, as identified by the Borough Manager, will review safety programs, training, and procedures. The committee will have the right to: a. Recommend specific safety programs and training to be presented to the employees. b. Recommend corrective action for unsafe practices, procedures and devices. 1118 PROHIBITION OF SMOKING Per Ordinance No. FY2011-06, adopted on December 2, 2010, by the Kodiak Island Borough Assembly and effective on January 1, 2011, smoking is prohibited in all buildings and offices owned or leased by the Kodiak Island Borough at all times. Except as provided in KIBC 8.30.010, smoking is prohibited within a distance of fifty (50) feet outside any entrance, window, or ventilation intake system of any building or office owned or leased by the Kodiak Island Borough to ensure that smoke does not enter any enclosed area where smoking is prohibited by this chapter. Smoking is prohibited on the grounds of the Borough Building at all times due to its proximity to the Kodiak Island Borough School District offices and the Kodiak High School property where smoking is prohibited. Approved by Ordinance No. FY2024-06 Consideration And Discussion To Change The Travel Policy 52 Page 36 of 129 AGENDA ITEM #2.c. B) If one of the spouses agrees to a voluntary transfer, the seniority standard for involuntary transfer shall not apply. C) It is agreed that if a Borough employee is to be transferred as a result of this provision and there is no comparable position available that the Borough Manager may use his discretion in making reassignment of the individual. However, the employee shall suffer no loss in salary, benefits, or seniority. 13.13 OTHER EMPLOYMENT No employee shall engage in any other employment, whether public, private or self- employment, during scheduled work hours, nor outside scheduled work hours if such employment conflicts with the Borough's interests or adversely affects the employee's availability and usefulness. 13.14 TRAVEL The Borough will be responsible for purchasing lodging and transportation for employees who are traveling out of town on official business. The Borough will reimburse the employee for local transportation such as ride services (Uber, Lyft, taxi, public transportation) upon submission of a payment request with a copy of receipts and the executed Travel Authorization. Employees will be paid a per diem for meals equal to the amount listed in the current US Government Services Administration (GSA) agency schedule. It should be noted that for non-contiguous states (Alaska and Hawaii) the GSA uses the Department of Defense Rates. These rates can be found on the Federal Government web site at htti)://www.gsa.clov. The federal government regulations also specify that on the first and last day of travel, per diem will be 75% of the daily rate. When an employee is on official business beyond their normal work hours and not requiring an overnight stay, per diem will be 75% of the daily rate. The Borough and its employees are expected to make every effort to minimize the cost of travel. The Borough will not pay for first class air travel, gourmet meals, alcoholic beverages, party expenses, plush hotel suites, etc. Before embarking on any travel and prior to submitting travel -related payment requests, employees must submit a Travel Authorization Form (Appendix B). In the event that an accommodation is found to be unavailable upon arrival, and payment cannot be made by the Borough, reimbursement may be requested for hotel rooms with proper receipt submittal. An advance for per diem can be requested no sooner than two weeks prior to travel. 13.15 STRANDED WHILE ON BOROUGH TRAVEL If due to inclement weather or other adverse conditions, employees traveling on Borough business become stranded away from their Kodiak office location the following will apply: Page 42 Page 37 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. A) The employee will not suffer a reduction in wages or benefits as a result of being unable to return to his/her principal work location. B) The employee will be provided with room, as outlined in Section 13.14 above, and necessary transportation at the Borough's expense. C) The Borough will reimburse the employee for any other reasonable, necessary expenses they would not normally have incurred had they been in Kodiak. An example of such an expense would be reimbursement for any childcare expenses that might result from the employee being stranded away from Kodiak. The above will not be reimbursable if an employee has extended his/her travel time in any way for personal reasons and becomes stranded due to taking a later flight than would have been required when the Borough business was completed. 13.16 SAFETY It is a fundamental responsibility of the Borough to provide a safe work environment for its employees. It is a fundamental responsibility of the employees to abide by all safety rules and regulations and to continuously practice safety while performing their duties. The Borough will furnish such safety devices and first aid kits as may be needed for the safety and proper emergency medical treatment of employees. Employees shall use personal protective equipment as may be prescribed by State or Federal standards or the Borough. It is the responsibility of each employee to report any unsafe situation to the supervisor immediately upon recognition of the unsafe situation. 13.17 SAFETY COMMITTEE A safety committee composed of two (2) representatives from the bargaining unit appointed by the Union and two (2) representatives from the Borough will review safety programs, training, and procedures. The committee will have the right to: a. Recommend specific safety programs and training to be presented to the employees. b. Recommend corrective action for unsafe practices, procedures and devices. 13.18 PROHIBITION OF SMOKING Per Ordinance No. FY2011-06, adopted 12/02/2010 by the Kodiak Island Borough Assembly and effective on January 1, 2011, smoking is prohibited in all buildings and offices owned or leased by the Kodiak Island Borough at all times; within a distance of 50 feet outside any entrance, window or ventilation intake system of any building or office owned or leased by the Kodiak Island Borough; and smoking on the grounds of Page 43 Page 38 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 39 of 129 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 39 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 40 of 129 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 40 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 41 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 42 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 43 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 (1) 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 personal 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. 0. 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 44 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 45 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 46 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 47 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 48 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 49 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 50 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 51 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 52 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 53 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. • 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 54 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 55 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 56 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 57 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 58 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. • 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 59 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 60 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 61 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 62 of 129 Consideration And Discussion To Change The Travel Policy Dated at Juneau, Alaska, this '2- day of AU4-U-" Duncan Rorie MER City Manager AGENDA ITEM #2.c. Page 13 of 13 Administrative Policy 18-01R CBJ Travel Policy and Procedure Page 63 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 64 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 Lodging Facility 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. Duty 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 65 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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)] 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 66 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 67 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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: hlW:Hdoa.alaska. og v/dop// pdb/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 68 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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) ::1 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 o£ • 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 69 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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. Agencv 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 70 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 71 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 72 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 73 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 Hiahwa 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. Lodging 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 Expenses 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 74 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 costibenefit 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. Lodging 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 Expenses 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 75 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 76 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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: 1. 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 77 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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. 7. 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 78 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 79 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 80 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 81 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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: http://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) 1 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 82 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. • 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: hllp:Hdoa.alaska.,aov/dof/travel/resource/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 83 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 84 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 39.20.185) 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 Phvsical 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 85 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 86 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 87 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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) 1 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 88 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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: httD:Hdoa.alaska.uov/dof/travel/trav acct.html. In- and Out -of -State. Short -Term Lodaine (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 89 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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: httD:Hdoa.alaska.eov/dof/travel/trav acct.html. Required Approvals 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 90 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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: httD:Hdoa.alaska. eov/dof/forms/resource/lontzterm.ndf. 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: httD:Hdoa.alaska.eov/dof/travel/trav acct.html. A link to the federal Per Diem rates is located on the Division of Finance web site at: httD:Hdoa.alaska.Lyov/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 91 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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&IE 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 Specific 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 92 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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 hgp:Hdoa.alaska. gov/dof/travel/resource/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 93 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDUR III. Travel as Time Worked A. Purpose 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 94 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. 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) Overnight (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 Page 2 Page Page 95 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDUR (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 Page 3 Page Page 96 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDUR 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 '/2 hours Effective: 9/16/01 Page 4 Page Page 97 of 129 Consideration And Discussion To Change The Travel Policy AGENDA ITEM #2.c. STATE OF ALASKA DEPARTMENT OF ADMINISTRATION DIVISION OF PERSONNEL STANDARD OPERATING PROCEDUR before the scheduled departure time, the initial'/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 Page 5 Page Page 98 of 129 Consideration And Discussion To Change The Travel Policy KODIAK ISLAND BOROUGH STAFF REPORT FEBRUARY 8, 2024 ASSEMBLY WORK SESSION AGENDA ITEM #2.d. SUBJECT: Discussion Regarding Sargent Creek Park Playground Equipment Procurement ORIGINATOR: Dave Conrad, E&F Director/Admin Official RECOMMENDATION: DISCUSSION: The Kodiak Island Borough and the State of Alaska Department of Commerce made an agreement via Resolution No. FY2024-04 to reappropriate the funds from the Anton Larsen Bay Dock project to the Repair and Replacement of Playground Equipment at the Sargent Creek Park in the amount of $251,426.50. The current equipment at the Sargent Creek Park is outdated and in need of replacement. The Engineering and Facilities Staff have prepared an invitation to bid for replacement of the playground equipment. The installation and site work will be bid separately. The bid for the equipment is due on March 1, 2024, at 2:30 p.m. Once Staff has bids in hand, and is ready to make a recommendation, Staff will return to the Assembly for approval. ALTERNATIVES: FISCAL IMPACT: Funding for this equipment will come from the State of Alaska Department of Commerce, Community and Economic Development Legislative Grant $251,426.50. OTHER INFORMATION: Kodiak Island Borough Page 99 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement KODIAK ISLAND BOROUGH SARGENT CREEK PARK AGENDA ITEM #2.d. PLAYGROUND EQUIPMENT PROCUREMENT ISSUED: January 31, 2024 Page 100 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. IMPORTANT BIDDER REGISTRATION FORM Upon receipt of these bid documents, the contractor shall fill out the information below and return to the Kodiak Island Borough in order to provide contact information to receive notification about additional information, addendum and any other information which may impact bid time or quantities. Only registered bidders will receive notifications. Contractor's Contact Information Name of Company: Contact Name: Address: Phone Number: Fax Number: Email: Return this form via fax, email, regular mail, or hand delivered to the following location: Patricia Valerio, Projects Assistant Engineering/Facilities Department Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615-6398 Phone: (907) 486-9341 Fax: (907) 486-9343 Email: pvalerio@kodiakak.us END OF BIDDER REGISTRATION FORM SARGENT CREEK PARK PLAYGROUND EQUIPMENT BIDDER REGISTRATION FORM 00000 Page 101 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement SECTION 00001 PROJECT TITLE PAGE SARGENT CREEK PARK PLAYGROUND EQUIPMENT PROCUREMENT KODIAK, ALASKA BID DOCUMENTS January 31, 2024 ACKNOWLEDGEMENTS OWNER KODIAK ISLAND BOROUGH END OF PROJECT TITLE PAGE SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. PROJECT TITLE PAGE 00001-1 Page 102 of 129 TABLE OF CONTENTS DIVISION 0 — BIDDING REQUIREMENTS AND CONTRACT FORMS 00000 REGISTRATION FORM 00001 PROJECT TITLE PAGE 00100 INVITATION TO BID 00200 INSTRUCTIONS TO BIDDERS 00200a BID MODIFICATION 00410 BID FORM 00420 NON -COLLUSION AFFIDAVIT 00510 EQUIPMENT PURCHASE AGREEMENT 00900 CLOSEOUT DOCUMENTS DIVISION 1— GENERAL REQUIREMENTS 01100 SUMMARY EXHIBIT A MAP OF PLAYGROUND AREA EXHIBIT B EXAMPLE STRUCTURES END TABLE OF CONTENTS SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. TABLE OF CONTENTS 00001 Page 103 of 129 AGENDA ITEM #2.d. SECTION 00100 INVITATION TO BID The KODIAK ISLAND BOROUGH will receive sealed bids until 2:30 pm (local time), March 1, 2024, for the SARGENT CREEK PARK PLAYGROUND EQUIPMENT PROCUREMENT, Kodiak, Alaska. The scope of work is to provide playground equipment as described in the specifications, including all freight costs to Kodiak, Alaska. The Kodiak Island Borough reserves the right to reject or accept any or all bids, to waive irregularities or informalities in the bid or in the bidding, and to give particular attention to the qualifications of the Bidder. Bid documents are available on the Kodiak Island Borough website at www.kodiakak.us or by contacting the individual below: CONTACT PERSON: Patricia Valerio, Projects Assistant Engineering/Facilities Department Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Phone: (907) 486-9341 Fax: (907) 486-9343 Email: pvalerio(a-),kodiakak.us Bid Package Available: January 31, 2024 SUBMIT BIDS TO: Office of Finance — Room 104 Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Bids will be received only in the Borough Finance Office and only until the time stated above, at which time they will be publicly opened and read aloud. Bids received after the time stated above will be returned unopened. Bid envelopes must be clearly marked SARGENT CREEK PARK PLAYGROUND EQUIPMENT PROCUREMENT. Aimee Williams, Borough Manager END OF INVITATION TO BID SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement INVITATION TO BID 00100-1 Page 104 of 129 AGENDA ITEM #2.d. SECTION 00200 INSTRUCTIONS TO BIDDERS 1.0 DEFINED TERMS. Terms used in these Instructions to Bidders and the Notice Inviting Bids, which are defined in the General Conditions, have the meanings assigned to them in the General Conditions. The term "Bidder" means one who submits a Bid directly to the OWNER, as distinct from a sub -bidder, who submits a Bid to a Bidder. 2.0 INTERPRETATIONS AND ADDENDA. a. INTERPRETATIONS. Clarification or interpretation of the Bidding Documents shall be made through a written request to the Project Manager at least five days prior to the date for receipt of bids. Questions received less than seven Days prior to the Deadline for Bids may not be answered. Only questions answered by formal written Addendum will be binding. Oral and other interpretations or clarifications will be without legal effect. b. ADDENDA. Interpretations, corrections, and changes of the Bidding Documents will be made by Addendum. Addenda will be made available through the Kodiak Island Borough website. Registered Bidders will receive notification that an addendum is available. Bidders are responsible for downloading the addendum from the Kodiak Island Borough website. 3.0 FAIR COMPETITION. More than one Bid from an individual, firm, partnership, corporation, or association under the same or different names will not be considered. If the OWNER believes that any Bidder is interested in more than one Bid for the WORK contemplated, all Bids in which such Bidder is interested will be rejected. If the OWNER believes that collusion exists among the Bidders, all Bids will be rejected. 4.0 RESPONSIBILITY OF BIDDERS. Only responsive Bids from responsible Bidders will be considered. A Bid submitted by a Bidder determined to be not responsible may be rejected. The OWNER may find a bidder to be not responsible for any one of the following reasons, but is not limited in its responsibility analysis to the following factors: a. Evidence of bid rigging or collusion; b. Fraud or dishonesty in the performance of previous contracts; c. Record of integrity; d. More than one bid for the same work from an individual, firm, or corporation under the same or different name; e. Unsatisfactory performance on previous or current contracts; f. Failure to pay, or satisfactorily settle, all bills due for labor and material on previous contracts; g. Uncompleted work that, in the judgment of the OWNER, might hinder or prevent the bidder's prompt completion of additional work, if awarded; h. Failure to reimburse the OWNER for monies owed on any previous contracts; i. Default under previous contracts; j. Failure to comply with any qualification requirements of the OWNER; special standards for responsibility, if applicable, will be specified. These special standards establish minimum standards or experience required for a responsible Bidder on a specific contract; k. Lack of skill, ability, financial resources, or equipment required to perform the contract; or 1. Lack of legal capacity to contract. SARGENT CREEK PARK INSTRUCTIONS TO BIDDERS PLAYGROUND EQUIPMENT 00200-1 Page 105 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. in. Bidders must be registered as required by law and in good standing for all amounts owed to the OWNER per Paragraph 21.0 of this Section. Nothing contained in this section deprives the OWNER of its discretion in determining the lowest responsible bidder. Before a Bid is considered for award, a Bidder may be requested to submit information documenting its ability and competency to perform the WORK, according to general standards of responsibility and any special standards which may apply. It is Bidder's responsibility to submit sufficient, relevant, and adequate information. OWNER will make its determination of responsibility and has no obligation to request clarification or supplementary information. 5.0 NON-RESPONSIVE BIDS. Only responsive Bids will be considered. Bids may be considered non-responsive and may be rejected. Some of the reasons a Bid may be rejected for being non- responsive are: a. If a Bid is received by the OWNER after the Deadline for Bids. b. If the Bid is on a form other than that furnished by the OWNER, or legible copies thereof, or if the form is altered or any part thereof is detached; or if the Bid is improperly signed. c. If there are unauthorized additions, conditional or alternate Bids, or irregularities of any kind which may tend to make the bid incomplete, indefinite, ambiguous as to its meaning, or in conflict with the OWNER's Bid document. d. If the Bidder adds any unauthorized conditions, limitations, or provisions reserving the right to accept or reject any award, or to enter into a contract pursuant to an award. This does not exclude a Bid limiting the maximum gross amount of awards acceptable to any one Bidder at any one Bid opening, provided that any selection of awards will be made by the OWNER. e. If the Bid does not contain a Unit Price for each pay item listed, except in the case of authorized alternate pay items. £ If the Bidder has not acknowledged receipt of each Addendum. g. If the Bidder fails to furnish an acceptable Bid guaranty with the Bid. h. If any of the Unit Prices Bid are excessively unbalanced (either above or below the amount of a reasonable Bid) to the potential detriment of the OWNER. i. If a Bid modification does not conform to Article 10.0 of this Section. 6.0 BIDDER'S EXAMINATION OF CONTRACT DOCUMENTS. It is the responsibility of each Bidder before submitting a Bid: a. To examine thoroughly the Contract Documents, and other related data identified in the Bidding documents (including "technical data" referred to below): 1. To consider federal, state and local laws and regulations that may affect cost, progress, or performance of the WORK, 2. To study and carefully correlate the Bidder's observations with the Contract Documents, and other related data; and b. To notify the OWNER of all conflicts, errors, or discrepancies in or between the Contract Documents and such other related data. c. The submission of a Bid will constitute an incontrovertible representation by the Bidder that the Bidder has complied with every requirement of Article 6.0, "Bidder's Examination of Contract Documents " herein, that without exception the Bid is premised upon performing the WORK required by the Contract Documents and such means, methods, techniques, sequences, or procedures of construction as may be indicated in or SARGENT CREEK PARK PLAYGROUND EQUIPMENT INSTRUCTIONS TO BIDDERS 00200-2 Page 106 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. required by the Contract Documents, and that the Contract Documents are sufficient in scope and detail to indicate and convey understanding of all terms and conditions for performance of the WORK. 7.0 BID FORM. a. Bids and bidding information shall be submitted on the Bid Form and other documents provided and as stipulated in the Invitation to Bid. b. All blanks on the Bid Form shall be filled out. c. All requested Alternates shall be bid. If no change in the Base Bid is required, enter "0." d. The Bidder shall make no stipulations on the bid form nor qualify the Bid in any other manner. e. All documents requiring a signature shall be signed by the person or persons legally authorized to bind the Bidder to a contract. A Bid by a corporation shall further give the state of incorporation and have the corporate seal affixed. A Bid submitted by an agent shall have the current power of attorney attached certifying the agent's authority to bind the Bidder. 8.0 SUBMISSION OF BIDS. All information required for bidding shall be submitted in accordance with the Invitation to Bid. The Bidder shall assume full responsibility for timely delivery at the location designated for receipt of Bids. Oral, telephonic, telegraphic, facsimile or other transmitted bids will not be considered. 9.0 DISCREPANCIES IN BIDS. In the event there is more than one Pay Item in a Bid Schedule, the Bidder shall furnish a price for all Pay Items in the schedule, and failure to do so may render the Bid non-responsive and cause its rejection. In the event there are Unit Price Pay Items in a Bid Schedule and the "amount" indicated for a Unit Price Bid Item does not equal the product of the Unit Price and quantity, the Unit Price shall govern and the amount will be corrected accordingly, and the Bidder shall be bound by said correction. In the event there is more than one Pay Item in a Bid Schedule and the total indicated for the schedule does not agree with the sum of the prices Bid on the individual items, the prices Bid on the individual items shall govern and the total for the schedule will be corrected accordingly, and the Bidder shall be bound by said correction. 10.0 BID MODIFICATIONS AND UNAUTHORIZED ALTERNATIVE BIDS. a. A Bid may not be modified, withdrawn, or canceled by the Bidder for 90 days following the time and date designated for the receipt of Bids, and each Bidder so agrees in submitting a Bid. b. Prior to the date and time designated for receipt of Bids, a Bid submitted may be modified or withdrawn by the Bidder. c. See the Bid Modification form which must be used to modify a bid after it has been submitted. The bid modification form may be delivered in person, by mail or by fax to the Contact Person listed in the Invitation to Bid. The Bid Modification form must be received by the Contact Person no later than the deadline for bids. Modifications will be time and date stamped which will establish the official time of receipt of the Modification. The Modification must not reveal the bid price but should be in the form of an addition or subtraction or other modification so that final prices will not be known until the sealed bid is opened. Submittal by the bidder of any form other than the Bid Modification form included in this section may deem the modification unacceptable and be cause for the bid to be rejected. d. Withdrawn Bids may be resubmitted up to the date and time designated for the receipt of SARGENT CREEK PARK PLAYGROUND EQUIPMENT INSTRUCTIONS TO BIDDERS 00200-3 Page 107 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. Bids provided that they are then fully in conformance with these Instructions to Bidders. 11.0 AWARD OF CONTRACT. Award of a contract, if it is awarded, will be on the basis of materials and equipment described in the Drawings or specified in the Technical Specifications and will be made to the lowest responsive, responsible Bidder whose Bid complies with all the requirements prescribed. Unless otherwise specified, any such award will be made within the period stated in the Notice Inviting Bids that the Bids are to remain open. Unless otherwise indicated, a single award will be made for all the Bid items in an individual Bid Schedule. If the OWNER has elected to advertise this Project with a Base Bid and Alternates, the OWNER may elect to award the contract for the Base Bid, or the Base Bid in combination with one or more Alternates selected by the OWNER. In either case, award shall be made to the responsive, responsible bidder offering the lowest total Bid for the WORK to be awarded. END OF INSTRUCTIONS TO BIDDERS SARGENT CREEK PARK PLAYGROUND EQUIPMENT INSTRUCTIONS TO BIDDERS 00200-4 Page 108 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. SECTION 00200a BID MODIFICATION Sargent Creek Park Playground Equipment Procurement Prior to the time and date designated for receipt of Bids, a Bid submitted may be modified by notice to the party receiving Bids at the place designated for receipt of Bids. All modifications shall be made to the original bid amount(s). Modifications shall be worded as not to reveal the amount of the original Bid. If more than one Modification form is submitted by any one bidder, changes from all Modification forms submitted will be combined and applied to the original bid. Changes to the modified Bid amounts will be calculated by the Owner. Bidder may use multiple modification pages if required. Circle either Addition or Deduction to indicate your adjustment to each applicable item. Sums shall be expressed in both words and figures. In case of discrepancy, the amount written in words shall govern. Bid Item (Base Bid, Alternate, etc) Addition / Deduction (circle one) Amount in Figures Amount in Words Addition / Deduction $ Addition / Deduction $ Addition / Deduction $ Addition / Deduction $ Addition / Deduction $ Addition / Deduction $ Name of Bidding Firm Responsible Party Signature Date Printed Name (must be authorized signatory for Bidding Firm) SARGENT CREEK PARK BID MODIFICATION PLAYGROUND EQUIPMENT 00200a Page 109 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. SECTION 00410 BID FORM Sargent Creek Park Playground Equipment Procurement agrees to perform the work required at the amount specified in strict conformance with the terms of this solicitation and the Contract Documents. This offer is valid for ninety (90) calendar days after the date offers are due. If differences between the written and printed form, the written form shall prevail. BASE BID: Total cost of playground equipment detailed in Section III of this Invitation to Bid including freight costs to Kodiak, Alaska: (if differences exist between the written and printed form, the written form shall prevail) ITEM 1: Modular Play Structure Dollars (Written):lNumerical: $ ITEM 2: Climber/Dome Structure Dollars (Written):lNumerical: $ ITEM 3 Spinner/Climber Structure Dollars (Written):Numerical: $ Estimated Equipment TotalNumerical: $ ITEM 4 Freight/Shipping to Kodiak, AK Dollars (Written):Numerical: $ Total Dollars (Equipment & Freight)Numerical: $ SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement BID FORM 00410-1 Page 110 of 129 AGENDA ITEM #2.d. ACKNOWLEDGEMENT OF ADDENDA The offeror acknowledges receipt of addenda to the solicitation. Provide the number and date of each. Addendum Number Date BIDDER QUALIFICATIONS Kodiak Island Borough will only accept bids from qualified bidders. To be qualified to bid on this project, the bidder must be able to demonstrate previous experience with providing quality playground equipment. Bidders shall certify their compliance with this requirement by completing the appropriate blanks. Failure to provide the required signatures and other information will disqualify the bid. Bidder must have the necessary experience, organization, technical qualifications, financial resources, and facilities available to perform the contemplated work. Bidder must in all respects meet Federal, State, and local requirements to qualify as a responsible bidder. By signing this form (and providing seal if a corporation) Bidder warrants that it meets these requirements. Respectfully submitted: Date: By: Signature: Title: Contracting Firm (Seal if by Corporation) Business Address END OF BID FORM SARGENT CREEK PARK BID FORM PLAYGROUND EQUIPMENT 00410-1 Page 111 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. NON -COLLUSION AFFIDAVIT The Undersigned declares, under penalty of perjury under the laws of the United States, that neither he/she nor the firm, association or corporation of which he is a member, a bidder on this project has, either directly or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in connection with this bid. The Undersigned has read the foregoing proposal and hereby agrees to the conditions stated therein by affixing his/her signature below: Signature Name and Title of Person Signing Telephone Number SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement NON COLLUSION AFFIDAVIT 00420-1 Page 112 of 129 AGENDA ITEM #2.d. SECTION 00510 KODIAK ISLAND BOROUGH EQUIPMENT PURCHASE AGREEMENT Contract No. 2024 -XX THIS AGREEMENT, made this day of , 2024, between the Kodiak Island Borough, acting by and through its Borough Manager, party of the first part, and of , hereinafter called the Distributor. WITNESSETH: That the Distributor, for and in consideration of the payment or payments herein specified and agreed to by the party of the first part, hereby covenants and agrees to furnish PLAYGROUND EQUIPMENT for the Kodiak Island Borough per the Specifications [part of the Contract Documents] for same and for the sum of (S ) Dollars. The Distributor further covenants and agrees that the manufacturing of said PLAYGROUND EQUIPMENT shall be done to the complete satisfaction of the Kodiak Island Borough, subject to inspection at all times and approval by any participating agency of the Government of the United States of America, and in accordance with the laws of the State of Alaska and rules and regulations of said Federal Agency. The Distributor further covenants and agrees that the manufacturing of said PLAYGROUND EQUIPMENT shall be done and performed in the best and most workmanlike manner and that all and every of said materials and labor shall be in strict and entire conformity in every respect with the Specifications: that he will abide by and perform all stipulations, covenants, and agreements specified in the Contract Documents, all of which are by reference hereby made a part of this Contract, as to all premises therein: and in case any of said materials or labor shall be rejected by the Borough Manager or his assistant or authorized representative, as defective or unsuitable, then the said materials shall be removed or replaced with other approved materials and the said labor shall be done anew to the satisfaction and the approval of the Borough Manager or his representatives, at the cost and expense of the Distributor. To the fullest extent permitted by law, the Distributor agrees to defend, pay on behalf of, indemnify and hold harmless the Kodiak Island Borough, its elected and appointed officials, employees and volunteers and others working on behalf of the Kodiak Island Borough against any and all claims, demands, suits or loss, including all costs connected therewith, and for any damages which may be asserted, claimed or recovered against or from the Kodiak Island Borough, its elected and appointed officials, employees, volunteers or others working on behalf of the Kodiak Island Borough, by reason of personal injury, including bodily injury or death and/or property damage, including loss of use thereof, which arises out of or is in any way connected or associated with this Agreement. The agreement entered into by the acceptance of the Distributor's bid and the signing of this Agreement consists of the following documents all of which are component parts of said Agreement and as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached. Agreement Invitation to Bid In the event of any conflict or inconsistency between any of the foregoing documents, the conflict or inconsistency shall be resolved upon the basis of the numerical order. The document or documents assigned the small number or numbers being controlling over any documents having a larger number in the numerical order set forth above. The Distributor further covenants and agrees that said PLAYGROUND EQUIPMENT shall be furnished and delivered to the satisfaction of the herein aforementioned Borough Manager, on or before , 2024. It is expressly understood and agreed that in case of the failure on the part the Distributor for any reason, except with the written consent of the Borough Manager, to complete the furnishing and delivery of said PLAYGROUND EQUIPMENT SARGENT CREEK PARK EQUIPMENT PURCHASE AGREEMENT PLAYGROUND EQUIPMENT 00510-1 Page 113 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. before the aforesaid date, the party of the first part shall have the right to deduct from any monies due or which may become due the Distributor, or if no monies shall be due, the party of the first part shall have the right to recover One Hundred Dollars ($ 100) per day for each and every calendar day elapsing between the time stipulated, and the actual date of delivery in accordance with the terms thereof: said deduction to be made, or said sum to be recovered not as penalty, but as liquidated damages. Provided, however, that upon receipt of written notice from the Distributor of the existing causes over which said Distributor has no control and which must delay the delivery of said PLAYGROUND EQUIPMENT, the Borough Manager may at his discretion, extend the period herein before specified for the delivery of the said PLAYGROUND EQUIPMENT, and in such case the Distributor shall become liable for said liquidated damages for delays commencing from the date on which said extended period shall expire. The Distributor hereby agrees to receive the prices set forth in the proposal as full compensation for delivering the PLAYGROUND EQUIPMENT to complete said Agreement to the satisfaction of the Borough Manager. It is further distinctly agreed that the said Distributor shall not assign this contract, or any part thereof or any right to any of the monies to be paid him hereunder. Payment for services rendered under this Agreement shall be made by the Kodiak Island Borough within thirty [30] days of delivery, acceptance by the Kodiak Island Borough and invoicing by Distributor. IN WITNESS WHEREOF, The Kodiak Island Borough Manager, by authority in him vested, has executed this contract on behalf of the Kodiak Island Borough, and the said have hereunto set their hands and seals, the day and year first above written. The terms of this agreement shall be from KODIAK ISLAND BOROUGH By to 12024. DISTRIBUTOR M Aimee Williams Borough Manager Title: Attest: By Nova Javier, MMC Boroughs Clerk SARGENT CREEK PARK PLAYGROUND EQUIPMENT EQUIPMENT PURCHASE AGREEMENT 00510-2 Page 114 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement SECTION 010100 SUMMARY I. INTRODUCTION AGENDA ITEM #2.d. The Kodiak Island Borough (Borough) desires to purchase playground equipment for Sargent Creek Park located behind the Women's Bay Fire Department on Sargent Creek Road in Kodiak, Alaska. II. SCOPE OF WORK The Kodiak Island Borough desires to purchase a modular play structure and a climbing/dome structure. Proposed equipment should be unique, eye catching, aesthetically pleasing, and safe for children. Scope of work includes all freight costs to Kodiak, Alaska. III. EQUIPMENT SPECIFICATIONS A. Playground Components (desirables/minimum requirements): a) Modular Play Structure (quantity —1) a. Recommended for ages 5-12. b. Approximately 10-14 play elements are desired. c. Shall feature or promote climbing, adventure, and discovery play. d. Ground space for modular play area (including adequate protective fall zones) is approximately 50'x35'. e. Image of example in Exhibit B B. Additional/Alternative Selections a) Climber/Dome Structure (quantity — 1) a. Accommodates 315lbs b. Ten -foot tall at minimum c. Galvanized steel d. Image of example in Exhibit B b) Spinner/Climber Structure (quantity -1) a. Accommodates 35-40lbs b. Twelve -foot tall at minimum c. Twenty -two -foot in diameter at minimum d. Must be able to spin e. Metal structure to be galvanized steel f. Rope needs to be 20mm in diameter at a minimum and coated with a synthetic polymer g. Heavy-duty galvanized steel footings h. Durable rubber material on stainless steel support posts i. Vandal -resistant cast aluminum pipe junctions j. Stainless steel shackle connections k. Maximum strength ball -knot connectors. 1. Image of example in Exhibit B SARGENT CREEK PARK SUMMARY OF WORK PLAYGROUND EQUIPMENT 010100-1 Page 115 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. C. All equipment must meet following requirements: a) No wood materials. b) Powder coated and corrosion resistant structure suitable for marine climate. c) Vandal resistant components. d) Suitable thickness and diameter structural elements to ensure high quality and long-lasting construction. D. Total park surface area is approximately 3,240 sq. ft. (shown on Exhibit A) E. All equipment must as a minimum meet the following standards: a) ASTM F1487 Standard Consumer Safety Performance Specification for Playground Equipment for Public use CAN/CSA-Z614 Children's Play spaces and Equipment. b) ASTM F1292 Standard Specification for Impact Attenuation of Surface Systems Under and Around Playground Equipment. c) U.S. Consumer Products Safety Commission Handbook for Public Playground Safety. d) Americans with Disabilities Act (ADA) Accessibility Guidelines for Buildings and Facilities; Play Areas, amended November 20, 2000. F. F.O.B.: All prices covered by this contract will include the freight cost to Kodiak, Alaska. IV. SCHEDULE AND SUBMISSION A. Schedule Bid Package Available: January 31, 2024 Questions Due: February 20, 2024 at 5:00 pm local time Sealed Bids Due: March 1, 2024, at 2:30 pm local time Tentative Contract Award: March 21, 2024 The Borough reserves the right to make adjustments to the above noted schedule as necessary. B. Pre-bid meeting and Questions There will not be a required pre-bid meeting, however, bidders may contact the Borough for clarification and information pertaining to this request for bids. Any requests for information or clarification must be submitted in writing by email to Patricia Valerio at pvalerio@kodiakak.us before February 20, 2024 at 5:00 P.M. No oral questions will be answered. Written responses to all questions will be posted on the Borough's web page as Addenda and emailed to all bidders. C. Bid Submission Bids submitted in response to this Invitation to Bid must meet the specifications set forth herein. Only those bidders providing complete information as required will be considered for evaluation. Any major deviation ftom these specifications will be cause for rejection of the bid at the Borough's discretion. Bids must include the following information: 1. Cover Letter, including: a. Project title SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement SUMMARY OF WORK 010100-2 Page 116 of 129 AGENDA ITEM #2.d. b. Name and address of the entity submitting the bid c. Date entity was established d. Name(s) of the person(s) authorized to sign any contract that may result e. Contact person's name, mailing or street addresses, phone and fax numbers and email address f. Original signature of person listed in section (d) above. g. Submission of the letter will constitute a representation by your firm that your firm is willing and able to perform the commitments contained in the bid. 2. Bidder Qualifications The bidder must submit their qualifications with designing similar playground equipment, their philosophy of play, and experience with projects of similar size. Bids should include a brief history and introduction of the company or firm, and the firm's understanding of the services to be performed. Provide a list of at least three public or private references for which you have provided products/services similar to those proposed. References are to include agency name, address, contact person, title, phone number, email address and contract budget amount. 3. Warran Manufacturer's warranty information must be provided in writing on each item being proposed. 4. Completed Bid Form and Acknowledgement of Addenda Bidders are required to submit a bid price and acknowledge any issued addenda on the Bid Form from Section 00410. The Borough intends to award this contract to the firm that it considers will provide the best overall services. The Borough reserves the right to accept other than the lowest priced offer and to reject any bids that are not responsive to this request. 5. Proposed Equipment Bidders are required to provide sufficient documentation to define the items being provided in this scope of work. Such documentation may include, but is not limited to vendor catalog sheets, general data sheets, drawings and sketches, or specification and warranty information. Bidders should include either pictures of their play structures or three-dimensional drawings of what is being proposed. 6. Installation Support The installation of any equipment purchased through this Invitation to Bid will be bid and contracted separately at a later date. Bidders should describe and provide examples of detailed installation instructions that can be provided and describe other support options available to the future installation contractor. D. Submittal One original bid package must be received by the Office of the Borough Manager no later than 2:30 P.M. (local time), March 1, 2024. Bids shall be sealed and addressed to: Office of Finance — Room 104 Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement SUMMARY OF WORK 010100-3 Page 117 of 129 AGENDA ITEM #2.d. The outside of the sealed envelope must be identified as SARGENT CREEK PARK PLAYGROUND EQUIPMENT PROCUREMENT. Late bids and bids sent by facsimile or email will not be accepted. It shall not be sufficient to show that the bid was mailed in time to be received before scheduled closing time, postmarks will not be accepted. V. TERMS AND CONDITIONS A. Errors and Omissions Proposers are responsible for reviewing all portions of this Invitation to Bid. Proposers are to promptly notify the Borough, in writing, if the proposer discovers any ambiguity, discrepancy, omission or other error in the Invitation to Bid. Any such notification should be directed to the Borough promptly after discovery, but in no event later than seven working days prior to the date for receipt of bids. B. Contract Bid shall be good for 90 days. A successful proposer will be expected to enter into a written contract with the Kodiak Island Borough prior to the purchase of the equipment. A copy of the standard Kodiak Island Borough Equipment Purchase Agreement is attached in Section 00510. C. Manufacturer's Name Any manufacturer's name, trade name, brand name, information and catalog numbers used herein are for proposes of description and establishing general quality levels. References are not intended to be restrictive of any products that manufacturer may offer. The determination as to whether any alternate product or service is equal shall be made by the Kodiak Island Borough and such determination shall be final and binding among all bidders. D. Specifications Any deviations from bid specifications indicated herein must be clearly stated otherwise it will be considered that items offered are in strict compliance with the specifications, and successful bidder will be held responsible. Deviations must be explained in detail. E. Placing of Orders The award of this bid does not constitute an order. Before shipments or service provided the bidder must receive a contract approved by the Borough Assembly and signed by the Borough Manager. F. Acceptance of Order The Kodiak Island Borough procurement rules state that we must receive the shipment, review for deficiencies or damages, and accept it before payment will be processed and released. If order is found to be deficient in part or as a whole the Vendor will be responsible for the freight costs to send the order back, if required. G. Payments Once the contract is awarded the Kodiak Island Borough will produce a purchase order in the amount owed for the order. SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement SUMMARY OF WORK 010100-4 Page 118 of 129 AGENDA ITEM #2.d. Once the order is received and accepted an invoice will be required to process the purchase order for payment. The invoice must include: a. Vendor's contact information. b. Kodiak Island Borough listed as purchaser c. Invoice number d. Invoice date e. Total for equipment f. Total for freight/shipping costs g. And combined total for both equipment and shipping. H. Documentation The Vendor will provide manufacturers documentation organized in a binder for all systems and materials to be provided with the order. This should include but is not limited to: a. Listing of all materials b. Listing of all coatings c. Listing of all parts d. List of commonly replaced parts e. Suggested maintenance and repair practices from the manufacturer. f. Drawings or diagrams of the play systems. SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement SUMMARY OF WORK 010100-5 Page 119 of 129 AGENDA ITEM #2.d. EXHIBIT A PLAYGROUND AREA 538 Sargent Creek Road, Kodiak, Alaska 99615 SARGENT CREEK PARK SUMMARY OF WORK PLAYGROUND EQUIPMENT 010100-6 Page 120 of 129 Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. EXHIBIT B EXAMPLES Example Play Structure SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement SUMMARY OF WORK 010100-7 Page 121 of 129 Example Climber/Dome Structure SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. SUMMARY OF WORK 010100-8 Page 122 of 129 Example of Spinning Climber Structure END OF SECTION SARGENT CREEK PARK PLAYGROUND EQUIPMENT Discussion Regarding Sargent Creek Park Playground Equipment Procurement AGENDA ITEM #2.d. SUMMARY OF WORK 010100-9 Page 123 of 129 AGENDA ITEM #4.a. Kodiak Island Borough OFFICE of the MANAGER TO: Kodiak Island Borough Assembly FROM: Aimee Williams 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9301 RE: Manager's Report, February 8, 2024 Manager's Department Joint Work Sessions — • City of Kodiak — meeting set for February 28th at the Kodiak Public Library at 6:30PM • Kodiak Island Borough School District — meeting set for March 5th at the KIBSD conference room at 6:30PM Coast Guard Appreciation Dinner — Being held by the Kodiak Chamber of Commerce tomorrow night, Friday, February 9, 2023. Deputy Presiding Officer Smiley will be attending on behalf of KIB. City of Kodiak Lease for Office Space — the lease is officially signed and attested and is good through December 31, 2026. Budget Year 2025 — Department heads started meeting with the Finance Director and me about their General Fund budgets this week. Staff plans on having the first look at the General Fund Budget to the Assembly at the February 29th Work Session. Alaska Municipal Management Association — Attended a Board of Director's meeting about the topics for the summer AML session that will be held here in Kodiak this summer. Borough Offices — Closed on February 19, 2024, for observation of President's Day. Upcoming Travel — • Lobbying in Washington DC — February 13-14, 2024. • Vacation February 15-18, 2024. • AML Winter Legislative Conference — February 19-22, 2024. • Dave Conrad will be the Administrative Official from February 12-22,2024. Page 124 of 129 Borough Manager's Report AGENDA ITEM #4. a. Community Development — AARP Community Challenge Grant — Community Development staff attended a meeting last week on the opening of this grant process. Staff is exploring potential grant application projects, The deadline for grant proposals is March 6. Planning & Zoning Commission — The Commission has a work session scheduled for February 14, 2024. On that agenda is the lease at Salonie Creek which will come across as a "land disposal" of the range property. Additionally, the Commission will review the final draft ordinance for ADUs before its scheduled public hearing on February 21, 2024. It is expected that this item will take at least two hearings before the Commission. Assessing Department Tax Roll — Assessing is preparing for Notice of Value forms for TY2024. Forms will be sent to the printer near the end of February for March delivery. Current Projects o Property cleanup for Tyler Conversion (12 queries completed so far!) o Exempt property (State, CG KIB, US) valuation o Land Values o Tyler Requests for Conversion information Exemptions- 4 new exemption applications were received by the Jan. 15 deadline for 2024 for either non-profit religious or charitable uses. (KANA Marketplace, KCHC, Alutiiq Museum and Calvary Baptist Church Bells Flats) o Completed 2023 packets reviewed include: Providence Mental Health, Baptist Mission, Alutiiq Museum, KANA Vacancy- The Assessing Department has one vacant position. Interviews for this position will begin next week. IT Department Network Infrastructure Backups: Project to harden and standardize our network devices. Exchange 2019 Upgrade — IT is working on upgrading our Exchange on premise server to 2019 and migrating it and the Borough mailboxes to a new resource Forest named kibresource.org. Rename kib.local to kodiak.us — IT is researching a project to rename the kib.local Microsoft Windows forest to kodiakak.us — this will align our systems with Microsoft best practices and provide a solid foundation for subsequent additional infrastructure and security measures. — currently in the early testing phase. Page 125 of 129 Borough Manager's Report AGENDA ITEM #4.a. GIS- Aggregating and simplifying tools for Borough and public use: i. Spoke to GIS about this and he is continuing to create map tools that are deployed via ARCGS Online, expect this to be an ongoing process as needed by the rest of the Borough. ii. Working on moving archival data to current GIS website for backwards compatibility. iii. Working on the Parcel Fabric (Basically making the parcel lines more accurate to reality through a long arduous process) iv. Assisting Community Development with data for their Comprehensive plan. a. Expected output of 30 individual maps for this project. V. Working on Documentation of our GIS Data and what's critical/how we edit it/why we edit it in this way. vi. Working on Identification of Missing Parcel IDs within our system. vii. Continuing with his project to Identify, organize and standardize our GIS data. viii. Analyzing our current ESRI licensing for any savings. Network Security - Ongoing efforts to improve overall network security. L Active directory accounts review L IT has disabled all inactive accounts. ii. Active Directory reorganization iii. Group policy review iv. Network device vulnerability scanning V. System Patch policy and enforcement Office 365 Training and Deployment - Microsoft Teams will be rolled out for communication use. i. Review deployment methods and group policy settings ii. Put together training material for users to review. iii. Configuring current phone system for Teams integration. iv. Offer training via zoom for interested employees. V. Review and refine deployment for issues and learned lessons. Data Retention — IT is working with the Clerks on the Borough data retention policy: currently evaluating other Alaskan governments' retention strategies with an eye toward augmenting our current backup technology and procedures with a backup product that allows us to set retention polices on our backups. Firewall Assessment — currently the Borough is not using the latest generation firewall technology (which are application aware) to protect its public facing assets such as the Borough web site and other infrastructure resources. IT is currently assessing the costs and feasibility of upgrading them (PFSense) to a Next Generation Firewall (NGFW) Page 126 of 129 Borough Manager's Report AGENDA ITEM #4. a. VPN Assessment — looking at improving the stability and usability of the Client VPN technology implemented at the Borough. Ideally the VPN technology will be automatic, and able to be used behind remote unmanaged firewalls. Win911 Review – IT is also working with Jacobs Engineering and our Engineering & Facilities Department to review and update if needed our Win911 system. Network Security Assessment — IT is evaluating existing network security infrastructure to see if we can improve our security posture by leveraging existing investments in Network Security technology. Training and Skills – IT is working on improving our overall skills by pursuing certifications: Training (CCNA, PowerShell, Microsoft Hybrid Server, MSSQL) Finance Department Property Taxes – The annual four-week newspaper publication of the Foreclosure List will begin February 16tH • Real Property: Staff has prepared the real property foreclosure documents and will file them with the court next week. • Personal Property: Staff will be preparing the small claims documents to file with the court in early March. Staffing – The Account Payable & Payroll Technician continue to show up for work and they are settling in nicely. We are still advertising for an accountant position. Engineering and Facilities Tree Blow Down – • AML/JIA requested photographs of the damage and downed trees. Homeowner has contacted the insurance and an investigation is underway. Remaining stumps are causing no property or road related issues. PKIMC – Elevator Upgrade Project has been advertised. Two elevator firms have indicated interest. • Providence Real Estate staff is continuing with the scoping of maintenance and replacement equipment and systems at the hospital facility. • Health Facilities Advisory Board (HFAB) is scheduled for Monday, February 12th at 3:00pm in the Barometer Conference Room at Providence Hospital ground floor. Page 127 of 129 Borough Manager's Report AGENDA ITEM #4.a. Solid Waste Contract Committee —Staff presented revised, condensed definition pages at the recent meeting. Direction was provided by the assembly members. Next meeting is scheduled for February 27, at 1:00pm in the Borough Conference Room. Landfill — • Excavator - o New Cat 320 Tracked Excavator has not arrived. Equipment is on the barge and enroute. Denali Commission Funding - Staff has met with KANA staff. A joint funding request will be prepared for submission. The focus for the KIB is to revisit the 2008 Solid Waste Management Study by Bell and Associates to update and evaluate any changes associated with the waste stream in today's climate. A focus specific to island wide household hazardous waste to support the rural communities and potentially accept this waste for further processing and elimination through the Borough Landfill. The application is due March 15, 2024. KFRC- • Discharge Permit —Permit is in place. KIB is preparing information to share with GSA specific to payment for the Staff directed by the Assembly to move forward with the project. Architectural Review Board has approved the design and staff will make recommendations on their behalf to the assembly. • Long Technologies technician trip was cancelled due to illness. Waiting for rescheduling. KIBSD — • Pool Complex repair discussion has been placed on the Joint Work Session Agenda for February 28tH • Middle School Elevator Upgrade is out for bid. The scheduled bid opening date is Friday, March 1, 2024, at 2:00pm in the Assembly Chambers. East Roof Proposal Package — Design Work has been ordered. • North Star Roof Replacement and Skylight Replacement — An Architectural Review Board meeting is scheduled for February 13th in the Borough Conference Room at 3:00pm. A professional cost estimate is due by February 9th. Preliminary estimate done by the architect is as follows: Base Bid- $2,534,450.00. Alternate #1 $387,750.00 Final cost with contingencies is $3,174,237. • Petersen Roof — Regular bi -monthly meetings are continuing. Awaiting Schedule of Values. being held. Submittal process continues. USCG has approved the use of a ball field for staging. Materials will be ordered within the next 30 — 45 days. Anticipate on site work to begin in April 2024. Weather dependent. Page 128 of 129 Borough Manager's Report AGENDA ITEM #4. a. Leachate Treatment Plant — The contractor and engineering firm are attempting to rectify the lack of meeting the gallons per minute of the associated new pumps. Alterations to the piping are required and are being discussed to adapt for maximum design flows to be achieved. KIB staff has asked for consideration due to not meeting the designed specifications. Discussions are ongoing. Due to performance issues a request for an end date extension will be made for a date in the future. Membrane Condition and Replacement — Membrane performance has diminished dramatically. Chemical cleans must be increased to continue operations until replacement membranes are delivered. The complete replacement of four membranes will be a cost of $283,000 not including freight. Currently the anticipated timeframe from order date is 62 to 64 weeks. ADEC Loan Meeting - Held on 2/6 to discuss payment request and scheduling of repayments. Staff is working on preparation for a request for disbursement. Closure Project is 100% completed. LTP Modification is 90% completed. Long Term Care — Spill costs have been reviewed and forwarded to Providence. Lease requires discussion and negotiation. Borough Building — Boiler supplier is scheduled for electric and oil -fired boiler training on February 13 and 14. Long Technologies will be required to perform additional onsite work associated with the Direct Digital Controls. Contractor completion schedule has been requested again. No completion date has been provided to the KIB. Asphalt patching required cannot be completed until summer of 2024. Sargent Creek Park Equipment - Equipment Procurement RFP is out for bid. A planned bid opening is scheduled for Friday, March 1, 2024, at 2:30 pm in the Assembly Chamber. 6 Page 129 of 129 Borough Manager's Report .� .- Locations Of Short Term Rentals / Lodges ,I ° �A In Bells Flats and on South Road System MOC7 TR' ` wb mens Say KASH(VAR(-VF d,4t7,LtNTAiil r 'W HEMMAN Middl Bay Fool,� ego � f Kalsin Say Chiniak Bay lethumus ®ay M pot .t• ''* SL��.�EAK ' r 011111101111111111111111 11111h. 'r ma, ► N i'• %w age Aw� S " f �►AP FIR Esri, HERE, Garmin, USGS, METI/NASA, NGA, EPA, USDA This map is provided for informational Kodiak Island Borough GIS Short Term Rental! purposes only and is not intended for www.kodiakak.us and Lodges any legal representation. 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Port Lions Remote STR's: I STR's: 1 Lodges: 3 Lodges: 54 0 F i Meiak STR's: 68 % Kbd Protection Area 1 STR's: 39 Larsen Bay Lodges: I STR's: 0 Chiniak Lodges:6 STR's: 3 Lodges:2 j South Road System YKcI k '31 STR's: 3 il "a 'ti�n ildl,10 I fug"y r Old Harbor STR's: I A Pe Lodges:3 0 J/ National V1 allife F40 This map is provided for informational purposes only and is not intended for ;;nv 1pn;;l rPnnocPnt-;;tinn Kodiak Island Borough GIS www.kodiakak.us (907)-486-9332 0 12.5 25 50 75 S Esn, HERE, Garmin, USGS, NGA, EPA, USDA, NPS Size of the circle Is proportional to total Number of STR's and Lodaes 100 Short Term Rental! and Lodges KODIAK ISLAND BOROUGH Meeting Type: Assembly Work Session Date: 02. D g - � Please PRINT your name legibly Phone number