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HomeMy WebLinkAbout03.c. Review draft Position Paper to adopt change to Board Policy No. BP 008-Travel Expense Reimbursement PolicyPage 1 of 5 Item 3.c. DCENTRALSAN MEETING DATE: FEBRUARY4, 2025 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO ADOPT CHANGE TO BOARD POLICY NO. BP 008 — TRAVEL EXPENSE REIMBURSEMENT POLICY SUBMITTED BY: INITIATING DEPARTMENT: PHILIP R. LEIBER, DEPUTYGM - DEPUTYGENERAL MANAGER ADMINISTRATION REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER ISSUE Board Policy 008 addresses various elements of Board and District staff travel, with a focus on reimbursement for travel expenditures. The issue of prohibiting multiple Board or Executive team members from traveling on the same flight is not currently addressed, but is raised in this Position Paper as a possible addition to the policy. BACKGROUND A 2009 survey of 101 global companies found that 84 percent have a policy restricting the number of executives that may travel on the same corporate or commercial plane (Association of Corporate Travel Executives ("ACTE") survey referenced in a February 10, 2009 Society of Human Resource Management article). The potential need for such restrictions is illustrated by situations where one company experiences multiple fatalities arising from a single plane crash, despite the overall favorable safety record that air travel provides. Key issues in the development of a such policy include (1) how much concentration is allowable; (2) which company officials and staff are covered by the restrictions and (3) whether modes of travel beyond flights are also covered. Discussion around each of these elements follows. How much concentration is permissible? The ACTE survey above noted that 40 percent of companies limit the number to three or four; 33 percent allow more than 10 employees to travel together; 13 percent limit the number to five or six; 8 percent limit the number to one or two, and an equal percentage say seven or eight is acceptable. The ACTE survey focused on large global companies; smaller limits would likely be appropriate for smaller entities such as Central San. As an example of such a restriction, Brown University's policy provides: 3.9.6 Senior Officers Traveling Together Under no circumstances will more than two Senior Officers be permitted to travel together, regardless of the mode of transportation. Vice Presidents and Deans with overlapping responsibilities should avoid group travel. The President, Provost, and Executive Vice President for Finance and Administration are discouraged from traveling together at all, regardless of February 4, 2025 Regular ADMIN Committee Meeting Agenda Packet - Page 35 of 47 Page 2 of 5 the mode of transportation. The level of agency personnel to which the restrictions would apply. According to the ACTE survey, for the firms that have travel restrictions, 61 percent apply the policy only to executive - level employees, 28 percent include all employees in the policy and 11 percent apply it only to corporate officers and directors. For Central San, the concentration limits could apply to both (a) Board of Directors; and (b) Executive team members (General Manager, Deputy General Managers, Human Resources & Organizational Development Manager, Secretary of the District, and District Counsel). Modes of transportation covered. Most policies focus on flights given the potential for catastrophic losses that can occur in the event of malfunctions or accidents. I n considering whether to propose a policy to address travel concentration risk, Staff conducted a survey of whether such restrictions are in place at peer agencies. Agencies contracted included East Bay Municipal Utility District (EBMUD), Santa Clara Valley Water, Contra Costa Water District, and San Francisco Public Utilities Commission; none of them current have such restrictions in place at this time, though representatives did express interest in such policies. Such policies are not limited to for -profit entities; research to review the structuring of these policies showed that many universities have adopted and posted these policies including Indiana University, Brown University, and Drexel University. If adopted, the policy would require some internal coordination to implement on an ongoing basis. Flights are not presently booked by just one Administrative Assistant, but by the support person of each group, and for the Board Members, by the Secretary of the District. There is typically knowledge of which Central San representatives will be attending scheduled conferences, so the employees booking such travel can coordinate to ensure the concentration levels specified in the policy are not breached. However this would be done on a "best efforts" basis, as it is possible without a fully centralized travel calendar more than the specified number of individuals could in some circumstances end up on the same flights. ALTERNATIVES/CONSIDERATIONS As discussed above, the key issues to address in a policy to limit travel concentration of key agency staff are the degree of concentration, which agency personnel are covered, and which modes of transportation are covered. Alternatives in these areas include: 1. Setting a restriction at a level higher than two or three such individuals 2. Extending the restrictions to a level beyond the Board of Directors and Executive team, such as to the Managers group, or for other concentrations of staff, such as a majority of staff (regardless of position) within a workgroup 3. The restrictions could go beyond just travel by flight, to travel by car or bus. I t is recommended that the travel concentration restrictions be specified at this time to prohibiting more than two or three Board of Directors and Executive Team members from travelling together on the same flight. FINANCIAL IMPACTS The costs associated with adopting a travel concentration restriction for Board members and Executive team members is likely to be minor, given the availability of alternative flights, and generally differing travel plans. COMMUNITY OUTREACH No community outreach has been conducted given the internally focused nature of this proposed addition to the Travel Reimbursement policy. February 4, 2025 Regular ADMIN Committee Meeting Agenda Packet - Page 36 of 47 Page 3 of 5 COMMITTEE RECOMMENDATION The Administration Committee reviewed the proposed changes to the attached Board Policy at its February 4, 2025 meeting and recommend RECOMMENDED BOARD ACTION Adopt addition to Board Policy No. BP 008—Travel Expenditure Reimbursement Strategic Plan Tie -In GOAL FIVE: Safety and Security Strategy 1 - Reduce and eliminate risks of injury or illness ATTACHMENTS: BP 008 - Travel Policy February 4, 2025 Regular ADMIN Committee Meeting Agenda Packet - Page 37 of 47 Page 4 of 5 Number: BP 008 Related Admin. Procedure AP 008 Authority: Board of Directors Effective: December 20, 2012 Revised: July 11, 2023 Reviewed: Ju'y20, 2023February 4, 2025 Initiating Dept./Div.: Administration BOARD POLICY All District staff travel including but not limited to attend conferences, training, seminars, meetings, and while conducting other official District Business must be approved in advance, with the exception of urgent or emergency travel benefiting the District. District travel is authorized by Board majority through budget approval, report, or position paper. Arrangements must be made in compliance with Administrative Procedures executed and enforced by the General Manager. 2. Board Members' attendance at conferences will be approved by the Board in advance for the calendar year on a Board agenda. 3. Board Members, District Counsel and the General Manager are authorized to travel without prior approval for compelling reasons, provided reasonable effort has been made to obtain prior approval. Review of such travel will be consistent with the approval process identified in item 6 of this policy. 4. To limit risk to the District. leadership team member concentration while travellina on the same flight shall not exceed the levels specified: 1. Not more than two Board Members on the same flight. 2. Not more than two Executive Team members (defined as management direct reports to the General Manager, and Board -evaluated staff positions) on the same flight. 3. Not more than any combination of three members of the above (Board Members or Executive Team members) on any flight. 54. Travelers are responsible for the timely preparation and submission of post -travel expense reports, summarizing all costs of the travel incurred separately by the employee and District, to the Finance Division for audit and reimbursement processing purposes. 65. While traveling on District business, it is the responsibility of elected officials, appointed officials, and employees to use sound judgment to ensure reasonable expenditure of District funds. February 4, 2025 Regular ADMIN Committee Meeting Agenda Packet - Page 38 of 47 Page 5 of 5 Number: BP 008 TRAVEL EXPENSE REIMBURSEMENT POLICY Page 2 of 2 Board Members whose expenses do not fall within this policy may be submitted to the Board of Directors for approval, in a public meeting, before the expense is incurred. 76. The General Manager, or their designee, shall approve travel reimbursement documents for the Board, General Counsel, and the Secretary of the District; and the Board President, President Pro-Tem, or the Secretary of the District shall approve travel reimbursement documents for the General Manager. The General Manager or their designee shall approve all travel approval/reimbursement documents for his/her direct reports, and in certain instances, other staff. Staff travel costs must be authorized in advance by the appropriate supervisorial body as specified in this policy's underlying Administrative Procedures prior to reimbursement. 87. Per Diem is an allowance paid to a traveler for meals and incidental expenses incurred when traveling. This allowance is in lieu of paying their actual travel expenses and is based on the IRS approved rate for the area where they travel. Staff will follow per diem procedures while Board Members will be reimbursed up to the Per Diem rate, with receipts, for the city where their travel occurs. 98. Board expenses not related to this policy; refer to resolution adopted by the Board on setting forth procedures for appointment to and establishment of Board committees and meeting compensation and expense reimbursement for Board Members. In addition, AB 1234 requires Board members to provide a report, written or verbal, to the Board in open session on the event, conference, seminar or training attended, to be agendized within 30 days of the event, and this will also be adhered to. [Original Retained by the Secretary of the District] February 4, 2025 Regular ADMIN Committee Meeting Agenda Packet - Page 39 of 47