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HomeMy WebLinkAbout 14-21 Adopting Updated Prchasing, Travel & Credit PoliciesRESOLUTION NO. 2w�l A RESOLUTION ADOPTING UPDATED PURCHASING, TRAVEL AND CREDIT CARD POLICIES FOR THE TOWN OF FIRESTONE WHEREAS, the Town of Firestone has previously adopted a set of purchasing policies and procedures for the Town as well as policies governing reimbursement of travel expenses and the use of Town -issued credit cards, and WHEREAS, the Board of Trustees finds that such policies and procedures should be updated and that the adoption of a set of current and comprehensive purchasing, travel and credit card policies will promote and support the efficient and effective use of Town resources and promote the best interests of the Town; and WHEREAS, there has been presented to the Board of Trustees for adoption a proposed set of purchasing, travel and credit card policies, which policies have been developed through the collaborative efforts of the Finance Committee, Town Manager, Department of Finance and other Town department heads, supervisors, staff and consultants; and WHEREAS, the Board of Trustees finds that the adoption of such policies is authorized by law; and WHEREAS, the Board of Trustees finds that the proposed Purchasing Policy and the award of bid provisions included therein are solely in support of the Town's fiscal responsibilities, including administration of annually appropriated funds, and solely for the benefit of the Town of Firestone, and confer no rights, duties or entitlements to any bidders or proposers; and WHEREAS, the Board of Trustees by this Resolution to desires to adopt said polices; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO: Section 1. The Board of Trustees hereby approves and adopts the Town of Firestone Purchasing Policy, the Town of Firestone Travel and Expense Reimbursement Policy, and the Town of Firestone Town -Issued Credit Cards Policy which are attached to this Resolution. Section 2. The Policies approved and adopted by this Resolution shall take effect April 1, 2014. Section 3. All resolutions and policies or portions thereof previously adopted that are inconsistent or conflicting with the policies adopted by this Resolution are hereby repealed to the extent of such inconsistency or conflict. Without limiting the foregoing, there is hereby repealed in its entirety Resolution No. 12-02, entitled "A Resolution Adopting Updated Purchasing, Travel and Credit Card Policies for the Town of Firestone" adopted January 25, 2012. INTRODUCED, READ, and ADOPTED this 110ay of B 3 2014. ATTEST: �'''• Larissa qedina Town Clerk TOWN OF FIRESTONE, COLORADO ES 00i W Chad Auer INS 2 PURCHASING POLICY Use of Policy This policy and the award of bid and other provisions herein are promulgated solely in support of the proper exercise of the Town's fiscal responsibilities, including administration of annually appropriated funds, and solely for the benefit of the Town of Firestone, and confer no rights, duties or entitlements to any bidders or proposers. 1 Purchasinq Levels Amount Required Procedures Petty Cash & Small Non -Bid Purchases Less than $50.00 Complete a "Petty Cash" request form. Petty cash requests require approval from the Department Head. Receipts and excess petty cash must be returned to the Finance Department within three business days of purchase. $50.00 to $10,000.00 Purchases within these amounts must be approved in advance by the Department Head, and require the vendor invoice and receiving document when the items are received. In this purchasing level, the Communications and Community Outreach Coordinator may approve purchases within his or her Program area. Informal Bidding $10,000.00 to $25,000.00 Purchases within these amounts must be approved in advance by the Department Head. Telephone quotations are required from a minimum of 3 vendors. $25,000.00 to $50,000.00 Purchases within these amounts must be approved in advance by the Department Head, Director of Finance, and Town Manager. Written quotations are required from a minimum of 3 vendors. Formal Bidding $50,000.00 and above Purchases of $50,000 and above must be approved in advance by the Board of Trustees. Written quotations are required from a minimum of 3 vendors and the procurement must follow applicable provisions of the "Formal Bidding Requirements". The Board of Trustees may reduce the number of required quotations and waive otherwise applicable formal bidding requirements if it is determined that it is not practical or advantageous to the interests of the Town. Please note: All purchases for goods or services under $50,000 require approval from the Department Head, unless noted otherwise. All purchases of goods or services over $50,000 require approval from the Board of Trustees. The Board of Trustees and/or Town Manager may direct the use of a higher level bidding process on the purchase of any product or service without consideration of dollar amount. In addition to the appropriate approvals, all purchases shall be supported by appropriated funds within the program area. Purchasing A petty cash request, check request or vendor invoice serves to inform the Director of Finance of the needs of the departments, correctly identifies a material or service requested for the department's operations, and identifies the expenditure account number to which the purchase is to be charged. 2 Petty Cash: The petty cash fund shall be used to pay for small obligations which do not exceed $50.00. Petty cash requests will be granted under the following circumstances: • An employee is requesting a cash advance for expenditures relating to Town business (sales receipt and any excess petty cash must be returned to the Finance Department within three business days). • An employee is requesting a reimbursement for expenditures relating to Town business (receipts must be attached to the requisition). It is the responsibility of the employee using the petty cash fund to obtain and use the Town's tax-exempt identification number. Tax paid will not be reimbursed or otherwise covered by the Town. Bidding Bidding procedures are used to provide vendors the opportunity to bid, to elicit greater vendor response, to meet competitive bid requirements when imposed by state or federal law, and to promote competitive prices from vendors for the purchase of capital equipment and other items of significant monetary value. The Board of Trustees and/or Town Manager may direct the use of a higher level bidding process on the purchase of any product or service regardless of the amount to be spent. As used herein, "bid" and "bidding" shall include requests for bids, requests for proposals, or requests for qualifications. The responsible department director, in consultation with the Director of Finance, shall determine when bidding procedures shall utilize a request for bids, request for proposals or request for qualifications, as appropriate. All purchases of goods or acquisition of services of $50,000 and over and all purchases of cars, trucks, and heavy equipment shall require formal bidding procedures unless otherwise required by statute or the Firestone Municipal Code. All purchases of any water rights or any interest in land require approval by the Board of Trustees regarding of the amount to be spent. Contracts for the purchase of property, liability and other insurance coverage, and contracts for the purchase or administration of employee health, welfare or insurance benefits shall be subject to formal bidding no less frequently than once every four years; however, the foregoing shall not limit the authority of the Board of Trustees and/or Town Manager to direct the use of formal bidding for any renewal. Types of Bids Informal Bids All purchases within the financial parameters of $10,000.00 to $50,000.00 shall require informal bidding procedures. • For purchases between $10,000.00 and $25,000.00, the requesting department shall obtain and document a minimum of three (3) verbal quotations. • For purchases between $25,000.00 and $50,000.00, the requesting department shall obtain and document a minimum of three (3) written quotations. 3 Steps to complete an informal bid: (unless otherwise stated, responsibility falls on requesting department): 1) Develop specifications. Upon finalization of the specifications, prepare any documents required by the informal bid. 2) Disseminate speccations to idened vendors, including dissemination by e- mail, mail or other method as appropriate. 3) Evaluate the bid results and determine which bid serves the Town's best interests. 4) Prepare a Purchase Requisition and obtain required approval for the level of purchasing. 17:1' iJii:1�3C� For purchases over $50,000.00, the requesting department shall follow and document the formal bid procedures outlined below, as applicable to the particular procurement. In presenting a formal bid procurement to the Board of Trustees, the requesting department shall obtain and document a minimum of three (3) written bids. The Board of Trustees may reduce the number of required quotations and waive otherwise applicable formal bidding requirements if it is determined that it is not practical or advantageous to the interests of the Town. Requests for formal bids shall be distributed to qualified/identified vendors in the manner determined by the requesting department. In the discretion of the requesting department, or if directed by the Town Manager or Board of Trustees, requests for formal bids may be posted to the Town website and may be published in a newspaper of general circulation in the Town, in other publications of limited circulation, or in trade journals, but such publication is not required by the Policy. If publication of a request for formal bids is required for a particular procurement by federal or state law or by a funding agency, the requesting department shall prepare and arrange for publication of the required notice. Notices, general instructions, conditions, and specifications shall be mailed, posted to the Town website or otherwise made available to qualified/identified vendors. All requests for formal bids shall be reviewed and approved by the Town Manager or designee prior to distribution. Steps to complete a formal bid: (unless otherwise stated, responsibility falls on requesting department) 1) Develop specifications. Upon finalization of the specifications, determine any special requirements, such as bid, performance, and payment bonds; insurance; retainage; and any special requirements the requesting department may need. See bonding and insurance requirements listed below. 2) Prepare bid documents. Prepare all documents required for the request for formal bid. Bid documents shall contain the following information, as applicable to the particular procurement,* which shall be determined by the requesting department head upon consultation with the Town Manager and Director of Finance: n • Where the bidder can obtain bid documents • Any costs of bid documents • Bid submittal deadline • Date, time and location of bid openings • Any bond and/or insurance requirements • Any special requirements • A statement to the effect that the Town reserves the right to reject any and all bids, and to accept the bid deemed to be the lowest reliable and responsible bid • A statement to the effect that all bids submitted become public information upon bid opening • General conditions • Minimum specifications • Bid proposal form • Delivery date or completion date • Period of bid validity • A statement to the effect that the bidder must submit with its bid a copy of its current contractor/business license(s) issued by the Town of Firestone, or obtain same prior to any award if bidder is the successful bidder. *(For example: a request for bids for a vehicle purchase typically would not include bond and/or insurance requirements.) 3) Determine bond, insurance, contract requirements. If any bonds, insurance, or contracts are required or are waived, obtain Town Attorney's approval. See bonding and insurance requirements listed below. 4) Distribute requests for bids. Make available a complete set of bid documents to all qualified/identified vendors or request vendors to pick up bid documents. 5) Open bids. Conduct the public bid opening per the identified bid opening date. Any bids received after the specified time will be returned to the bidder unopened. All bids/quotes/proposals should be retained for the minimum period required by the Town's records retention schedule (generally three years after contract is awarded). 6) Evaluate bids. Evaluate the bid results and determine which bid serves the Town's best interests. If the recommended vendor has not submitted the low bid, the department must demonstrate how the higher bid serves the best interests of the Town. 7) Prepare Board report. Prepare report to Board of Trustees for its review and action on the proposed procurement. 8) Complete draft documents for Board packet. Obtain Town Attorneys approval on all bid documents requiring bonds, insurance, or contracts prior to the Board of Trustees meeting. 9) Notify vendor. Upon Board of Trustees' award of bid, notify successful bidder and notify other bidders of the results as requested. 10) Finalize documents. Obtain signatures on all contracts and any additional required documents from vendor. One original signed contract with all exhibits must be submitted to the Town Clerk for central filing. Bonding Requirements: Bonds shall be executed on forms prescribed or approved by the Town Manager based on review by the Town Attorney as to form and State of Colorado law. Normally, bonds are used only on critical or complex procurement actions, such as projects for completion of public works or public buildings. Bonds generally are not required for purchases of vehicles, equipment, or standard commercial goods and services, particularly when the goods are not altered or customized to unique Town specifications, but may be required if deemed by the procuring department to be in the interests of the Town. Some examples of bonds are: • Bid Bonds: This bond is intended to protect the Town against a bidder's failure to honor its bid. The bid bond requirement may be satisfied by receipt of a certified bank check or a bid bond. The bid security is submitted as guarantee that the bid will be maintained in full force and effect for a period of thirty (30) calendar days after the opening of bids or as specified in the solicitation documents. If the bidder fails to provide the bid security with the bid when requirement by the bid documents, the bid shall be deemed non -responsive. The bid bond should be in an amount equal to at least 10% of the vendor's bid price. • Performance Bonds: This bond is intended to secure performance of the vendor's performance of its obligations. A performance bond, satisfactory to the Town, may be required for all capital projects contracts awarded in excess of $50,000. Unless the Town is legally required to accept a bond in lesser amount, the performance bond shall be in amount equal to one hundred percent (100%) of the price specified in the contract. • Payment Bonds: This bond is intended to secure payment of subcontractors and suppliers. A payment bond for the protection of all persons supplying labor and material to the contractor or its subcontractors may be required for all capital projects contracts awarded in excess of $50,000. Unless the Town is legally required to accept a bond in lesser amount, the payment bond shall be in an amount equal to at least one hundred percent (100%) of the price specified in the contract. Insurance Requirements: Contracts entered into by the Town will require the selected contractor to carry the types and minimum amounts of insurance coverage as required by the Town. The contracts shall also contain other provisions regarding insurance as the Town shall require. Unless different types and/or amounts of coverage are determined appropriate during the development of the specifications, general conditions and/or final contract, the following are the types and minimum amounts of insurance that should be required: a. Workers' Compensation in statutory limits (if applicable). b. Employer's Liability Insurance: $100,000/ each accident, $500,OOOl disease - policy limit, and $100,000/ disease - each employee. c. Comprehensive General Liability Insurance: $1,000,000/Occurrence d. Automobile Liability or Hired & Non -Owned Vehicle Liability Insurance: $1,000,000/each accident (if applicable). e. Professional Liability Insurance: $1,000,000/Occurrence. Certain types of insurance may not be applicable to a particular contract. For example, professional liability insurance would not be applicable to a contract for installation of playground equipment. Whether a particular type of insurance is applicable shall be determined by the requesting department head in consultation ry wAn the Director of Finance and Town Attorney. Depending on the type of contract or services to be provided, higher insurance coverages may be required. Bid documents should state the Town's anticipated insurance and bond requirements for the contract to be awarded. Bidders should be advised that the successful bidder shall be required to provide certificates of insurance with the Town named as additional insured, and that the contractor shall not commence work until it has obtained all insurance required by the contract documents and such insurance has been approved by Town. Bidders List: The Town Manager in consultation with the Department Heads may establish and maintain bidders lists as an effort to promote competitive bidding from qualified vendors and to establish a source of suppliers. Evaluation of Bids: In addition to the bid amount, additional factors will be considered as an integral part of the bid evaluation process, including, but not limited to: • The bidder's ability, capacity and skill to perform within the specified time limits; • The bidder's experience, reputation, efficiency, judgment, and integrity; • The quality, availability, and adaptability of the supplies or materials bid; • Bidder's past performance; • Sufficiency of bidder's financial resources to fulfill the contract; • Bidder's ability to provide future maintenance and/or service; • Other applicable factors as the Town determines necessary or appropriate (such as compatibility with existing facilities, equipment or hardware); and • If a bid other than the lowest bid is recommended, the requesting department must demonstrate how the higher bid serves the best interests of the Town. Contracts for Engineering Design and Construction Management Services The following bidding requirements shall apply to engineering design and construction management services for capital improvement projects: • Under $30,000: Engineering design and construction management services under $30,000 may be approved by the Town Manager as non -bid procurements. No bids are required. • Between $30,000 and $60,000: For engineering design and construction management services between $30,000 and $60,000, informal bidding procedures will apply, except the Town Manager and Department Head may waive the informal bidding requirements at this level if they both agree that it is not practical or advantageous to the interests of the Town. All purchases for engineering design and construction management services over $50,000 must be approved by the Board of Trustees. h • $60,000 and above: For engineering design and construction management services $60,000 and above, formal bidding procedures shall apply. In addition to the appropriate approvals, all purchases shall be supported by appropriated funds for the specific capital improvement project. State Bids State Bids are quotations or bids solicited by the through the State of Colorado (Bid Information and Distribution System). Use of State Bids is permitted for any equipment or vehicle purchases on items priced from $20,000 to $150,000, Use of State Bids must be in accordance with applicable procedures and only current State Bids may be used. Use of State Bids would override the formal bidding process and procedures listed above. The determination of whether to use State Bids shall be made by the Town Manager upon consultation with the requesting department and the Director of Finance. Integrated Project Delivery Contracting Process The Board of Trustees may award an integrated project delivery ("IPD," sometimes referred to as "design -build") contract for a Town capital improvements project, or other public project as defined in C.R.S. § 31-25-1303, upon a determination by the Board of Trustees that IPD represents a timely or cost-effective alternative for the public project. Prior to awarding an IPD contract, the requesting department head, upon consultation with the Town Manager and Director of Finance, shall solicit proposals for the project by issuing a request for proposals or request for qualifications to individuals or firms that have indicated an interest in participating in the proposed project or that have displayed evidence of expertise in the proposed project. Notice of the initial solicitation for an IPD procurement shall be published in a newspaper of general circulation within the Town. The Town may also publish notice of the solicitation in a trade journal or post notice on the Town's website. After reviewing the proposals, the Board of Trustees may accept the proposal that, in its estimation, represents the best value to the Town. In the procurement and administration of an IPD contract, the Town may utilize, without limitation, the provisions and procedures set forth in C.R.S. § 31-25-1301 et seg. Sole Source Purchases and Local Vendor Preference Sole Source Purchases: It is the policy of the Town of Firestone to recognize and solicit quotes and bids. Sole source purchases may be made if it has been determined that there is only one good or service that can reasonably meet the need and there is only one vendor who can provide the good or service. These purchases should be used only if it is in the best interest of the Town, and the following procedures shall apply: Sole Source Purchase in the amount of $5,000.00 to $25,000.00 The requesting department shall provide written justification for the sole source purchase and attach to the purchase requisition. The Director of Finance will review the justification for the sole source purchase. If the sole source justification is accepted by the Director of Finance, approval will be E:3 granted. If the purchase is unwarranted, two (2) more telephone quotations are required. Sole Source Purchase in the amount of $25,000,00 to $50,000.00 The requesting department shall prepare a memorandum to the Director of Finance justifying the sole source purchase. The Town Manager and Director of Finance will review the justification for the sole source purchase. If the sole source justification is accepted by the Town Manager and Director of Finance, approval will be granted. If the sole source purchase is not approved, the department shall obtain additional written bids or quotes in compliance with this Policy. Sole Source Purchase of $50,000.00 or above The requesting department and Town Manager shall include within the materials presented to the Board of Trustees a memorandum justifying the sole source purchase. Bidding procedures may be waived by the Board of Trustees when it has been demonstrated that the requested goods or services are a sole source purchase. If the sole source purchase is not approved, the department shall obtain additional bids or quotes in compliance with this Policy. Local Vendor Preference To encourage purchasing from businesses located within the Town of Firestone, it is the policy of the Town to recognize and solicit quotes from local vendors. Whenever such local sources exist and are competitive, purchases may be made from local vendors; however the bidding requirements, procedures and criteria of this Policy shall still apply. Unless a violation of law or prohibited as a condition of a grant, bids for purchases of goods of $5,000 or less may be awarded, as deemed appropriate solely within the discretion of the Town, to local vendors providing their proposal or quote is within 2% of the lowest bid. This provision applies only to purchases of goods of $5,000 or less and does not apply to procurement of services. For purposes of this provision, a "local vendor" is defined as any person or entity who has been a bona fide resident of Firestone who has held a valid Town business license for at least six weeks immediately prior to submitting a bid. Purchases During Emergencies In the event of local disaster or emergency conditions declared by the Town, the Town shall comply with this Purchasing Policy to the extent practicable. Forms required herein for the purpose of authorizing and acquiring goods or services necessary for the immediate preservation of life, health, safety, welfare or property may be ratified after acquisition when a delay in acquiring the goods or services will cause immediate risk to life, health, safety welfare or property, based upon the determination of the Town Manager. Goods and services necessary for the immediate preservation of life, health, safety, welfare or property during a local disaster or emergency conditions shall not require compliance with bidding requirements set forth in this Policy, and may be awarded on a sole -source basis. Receiving Procedures and Check Requests Receiving Procedures: 1) It shall be the responsibility of the receiving department to ensure that goods and services are received as ordered and in good condition. Immediately upon receipt of merchandise, check quantity, quality, and any specifications such as model number, etc. to ensure that the goods have been received as indicated on the packing slip. 2) If the goods are faulty or damaged, notify the vendor and Director of Finance or designee immediately. If damage is concealed or not noticed at time of delivery, leave all boxes and packing lists intact and notify vendor immediately. 3) It shall be the responsibility of the receiving department to inform the Director of Finance or designee of the delivery and acceptance of an order by submitting the receiving documents with the check request for payment. 4) It shall be the responsibility of the receiving department to inform the Director of Finance or designee when full or partial payments are authorized. 4) All invoices shall be mailed by the vendor directly to the accounts payable department. 5) The receiving department shall be responsible for notifying the vendor of any goods received that are not in compliance with the terms of the order and any damaged goods. Check Requests: Check request forms are used to request payment for materials or services. Check requests will be granted on the following circumstances: • Checks will be cut in accordance with the Finance Department schedule • Original invoice must be attached • All requests must be signed by the department head • All check requests must be properly coded • Receiving documents must be attached and signed off • Checks over $50,000.00 will require at least one manual signature of any authorized account signer. Ethics in Town Contracting As provided in C.R.S. § 24-18-201 et seq., elected and appointed Town officials and Town employees shall not be interested in any contract made by them in their official capacity or by any Town body or board of which they are members or employees, except in the circumstances described in such statute. Such circumstances generally include contracts awarded via competitive bidding procedures, contracts with respect to which the official or employee has complied with the disclosure and recusal requirements of state law, and other limited situations. 10 Elected and appointed Town officials and Town employees involved in the procurement process shall comply with all ethics laws governing such process. Capital Asset: Tangible or intangible property, including durable goods, equipment, software, buildings, installations, easements, and land valued at $5,000 or more. Capital Improvement Projects (CIP) —Any projects to build, alter, regulate or maintain necessary public buildings, streets and alleys, public parks and facilities, municipal utilities, sidewalks, highways, parks or public grounds. Capital Outlay —Expenditures which result in the acquisition of or addition to capital assets ($5,000 or more). Capital Projects — A project that is budgeted in capital accounts. Department Head —Town Manager, Chief of Police, Director of Finance, Human Resources Manager, or Public Works Director, as applicable. Emergency conditions - A situation in which any department's operations may be severely hampered or a situation in which the preservation of life, health, safety, welfare or property of employees or the public are endangered. This includes those instances when immediate repair to Town property, equipment, or vehicles is necessary under the aforementioned circumstances. E penditures —Decreases in net financial resources. Expenditures include current operating expenses which require the current or future use of net current assets, debt service, and capital outlays. Integrated project delivery (IPD) — A project delivery method in which there is a contractual agreement between the Town and single participating entity for the design, construction, alteration, operation, repair, improvement, demolition, maintenance, or financing, or any combination of these services, for a public project. IPD contract - A contract using an integrated project delivery method. Professional Services —Those services within the scope of the practice of architecture, engineering, professional land surveying, industrial hygiene, legal counsel, financial advisers, land development planners, building inspection services, information technology services, and banking services. Retainage - A portion or percentage of payments due for work completed on a contract that is held back until the entire job is completed satisfactorily. Services The furnishing of labor, time, or effort by a contractor not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. The term does not include professional services or integrated project delivery as previously defined. Sole Source Purchase - A procurement of goods or services which can only be obtained from a single supplier capable of meeting all specifications and purchase requirements or when it is in the Town's best interests. 11 Surplus Property - Materials and equipment which are no longer necessary to Town operations, obsolete, and/or excessively expensive to maintain. 12 TRAVEL AND EXPENSE REIMBURSEMENT POLICY The Town of Firestone (Town) expense policy is designed to clarify which expenses incurred by a Town official or employee in the course of conducting Town business are reimbursable. To qualify for reimbursement, each expenditure must meet the criteria described here and must be documented as described in this policy. Reimbursements will be made only for actual, reasonable authorized business expenditures and travel. The expense policy also covers processing and proper use of the expense report, which is the method for requesting and obtaining reimbursement. This expense policy document will be updated when necessary to reflect changes in state or federal tax codes or changes in the Town's operations. Officials and employees are responsible for making certain they apply the Town's current policies when submitting their expense reports. For any questions about this policy or for clarification about current requirements, contact the Department of Finance. Any personal time used in conjunction with business travel must have the prior approval of the employee's direct supervisor. Officials and employees are responsible for all incidental and additional costs associated with this pre -approved personal travel. Exceptions to the Expense Policy The Town recognizes that some situations and circumstances may arise that could require exceptions to the expense policy. Approval of any exceptions to the expense policy must be made in writing by the Town Manager. Travel Arrangements Prior to making any travel arrangements, approval must be granted by your Department Head and the Director of Finance. All travel arrangements for Town -related air travel must be made through the Town Clerk or the Office/HR Assistant including conference, seminar or trade show registrations. A Travel Preference Form should also be completed prior to the travel date in order to provide information for the staff noted above. EXPENSE REPORTING All officials and employees making reimbursement requests must submit timely, complete and accurate expense reports. Expense reports must be submitted to your Department Head for approval and then routed to the Finance Department for processing. Expense reimbursements are typically processed each month, with the routine accounts payable cycle. Documentation Standards Reimbursable expenditures must be supported by documentation attached to the expense report, in a neat and orderly manner. Any revisions made to an expense report must be initialed by the person making the change. If the Finance Department makes a change to an expense report, the official or employee will be notified. The Internal Revenue Code requires that reimbursable expenditures be supported by adequate records showing clearly that they were: • Ordinary and necessary. • Reasonable in amount. • Incurred for a valid business purpose. To meet these requirements, the following information must be provided for an expense to qualify for reimbursement: • Identify the official or employee requesting reimbursement. • Identify the vendor, customer, contractor, supplier or other person or business to which the expenditure was paid. • State the business purpose for the expenditure. • State the identity and business relationship of any others participating in the event covered by the expenditure. • Attach the original itemized receipts (e.g, hotel bills, airline passenger receipts, E-ticket confirmation, meal receipts, automobile rental invoices, parking receipts, toll receipts, telephone bills). Include the original credit card receipt, cash receipt, original itemized monthly credit card statement, or a copy of the canceled check as proof of payment. Lost Receipts In the unusual circumstance that a receipt is lost or was not obtained, (i.e. parking meters, tolls, tips) the official or employee must complete a section of the expense form detailing these expenditures before that expense can be considered for reimbursment. This section requires the same information to support the expenditure as that listed above, including the identity of the individuals in the party, business purpose, and the amount of the expenditure. For items that were paid for with a credit card, attach a copy of the monthly billing statement in which the charge was included. Cellular Phone Expenses Reasonable expenses will be reimbursed for personal cell phone use for Town business, with a maximum of $20.00 per month, to employees who have submitted their personal number to be published for business use. Proper documentation will still be required to justify receiving reimbursement up to this limit, including a copy of the bill showing the service dates and monthly charge. The cost of purchasing a cellular phone will not be reimbursed. Civic Organizations, Charitable Organization and Clubs Membership fees to civic or charitable organizations or athletic or social clubs are NOT reimbursable. Computer Equipment and Software Computer equipment and software is NOT an expense reimbursement item. All computer equipment and software must be requested through the Director of. Computer equipment and software will be dispersed based on availability and need. Conferences, Seminars and Trade Shows Conferences, seminars, and trade shows are reimbursable only when approved in advance by your Department Head and the Director of Finance. Reservations can be made through the Town Clerk or Office/HR Assistant. Any relevant information regarding registration should be forwarded to the staff person assisting with your arrangements. Entertainment Reasonable expenses will be reimbursed for business meals and entertainment. Recreational fees and event tickets may be reimbursable if the particular activity involves personnel from a business contact, or consultant. Professional and Industry Conference Fees Professional and industry conference fees are reimbursable ONLY when approved in advance by your Department Head and the Director of Finance. 3 Professional Licenses/Certifications Annual fees/renewals for licenses (such as CPA, operator's certificate) are reimbursable if related to the employee's current position and if payment thereof is approved in advance by the employee's Department Head and the Director of Finance. CDL licenses, if a requirement of the employee's position, are also reimbursable. Exceptions MUST have prior written approval of the Town Manager. Continuing education for licensing/certification will also be reimbursed if related to your position and if payment thereof is approved in advance by the employee's Department Head and the Director of Finance. Professional Societies With prior approval from your Department Head and the Director of Finance, annual membership dues for professional societies related to your position are reimbursable. Protective Footwear Field employees are expected to wear approved protective footwear when pertorming duties that would put them at risk for a foot injury. Approved protective footwear includes steel and composite toe boots, hikers, shoes and sneakers, meeting required standards. Footwear is reimbursable up to a maximum of $75.00 per eligible employee per year. This amount may be changed in writing by your Department Head on an as - needed basis. Supplies All purchases of office or other job -related supplies should be coordinated through the Department Head and/or their designee. TRAVEL EXPENSES Air Transportation All air travel must have the prior written approval of the Town Manager. Air arrangements can be made through the Town Clerk or Senior Administrative Specialist R. Internet and direct airline reservations are also acceptable, if coordinated with the staff noted above. When booking air travel, cost savings opportunities are increased when a traveler provides general departure and arrival times instead of specifying certain carriers or flight numbers. Significant savings are realized by advance planning. Travelers are expected to exercise good business judgment and planning to avoid last-minute ticket purchases. All officials and employees will travel coach class. The following guidelines apply to airline travel: • The cost of purchasing upgrade coupons is not reimbursable. • To take advantage of airline discounts, reservations are to be made as far in advance as possible. • Nonrefundable or penalty tickets provide considerable savings opportunities and should be considered when it is highly unlikely that an itinerary will change. • Travelers should request airline reservations according to approximate necessary departure or arrival times rather than by specific airlines or flight numbers to allow for the lowest logical or negotiated fare for appropriately timed flights. • Travelers should consider the use of alternate airports when the fare differential represents significant savings. • If additional costs are incurred because of changes in travel plans, such costs are reimbursable by the Town if the reason for the changes is business related. If the reason for changes is personal convenience, the costs will NOT be reimbursed. • Travelers may keep for their own use any mileage awards received from frequent flier programs accrued from Town travel. In no case, may an official or employee arrange a more expensive flight or circuitous routing to accumulate mileage points. • Report lost or stolen tickets immediately, so a lost ticket application can be processed. The use of &tickets is highly recommended. • If a trip is cancelled or changed, and the traveler is in possession of unused tickets, the traveler is responsible for returning them, in a timely manner, to the airline for credit. Automobile Travel Expenses Personal Auto Use Officials and employees who use their personal vehicle for authorized Town business will receive the current IRS allowable reimbursement for business miles. The current reimbursement rate can be found on www.IRS.gov. Any highway tolls or parking fees incurred during business travel are also reimbursable. Mileage from the employee's home to regular assigned work is not reimbursed. If an employee drives directly from home to another work assignment in a different location or attends a training class/seminar, these miles will be reimbursed. Mileage incurred while attending social events sponsored by the Town, its contractors, or vendors is NOT reimbursable. A Mileage log must be included with your expense report. Automobile Rentals Automobiles should be rented only when a Town vehicle is not available and public transportation, taxis, or shuttles are impractical, more expensive, or not available, and only when traveling out of the Denver/Front Range area. Vehicles up to midsize class are customary for individual travelers. The next larger size class may be rented when three or more people from the Town are traveling together. Reimbursable items include the actual cost of the rental, tolls and gasoline purchases. Although reimbursable, one-way rentals should be avoided and must be specifically explained in the documentation attached to the expense report. Insurance coverage provided by car and vehicle rental companies should NOT be purchased when traveling on business. Both the vehicle and the Town official/employee are covered by insurance purchased by the Town. Please inspect the car for damage prior to leaving the rental car lot and notate clearly on the rental agreement with the rental car company employee signoff. Ground Transportation Taxi and shuttle charges incurred during business related travel to and from airports or in out -of --town locations are reimbursable. Reimbursement will be for the actual fare, tolls, "extra" charges for luggage or passengers, and a maximum 15% tip for good service. Hotels &Lodging The traveler should pay all hotel accommodation charges upon checkout when traveling out of town on business. Hotel charges may not be billed directly to the Town, unless the Town has previously authorized a direct master billing with the facility. Travelers should stay in a single, non -concierge level room. Suites are acceptable only when suite accommodations are the standard room type of the hotel or when the cost is consistent with other local single room rates or the conference discount rate. 0 Hotel communications (internet, fax) may be reimbursed when relating to Town business. If a traveler has a hotel reservation and is unable to use the reserved room, it is his/her responsibility to cancel the reservation. Most hotels require cancellations by 6:00 pm, the day of arrival. "No-show" charges are not reimbursable without the approval of your Department Head and the Director of Finance, and generally are not reimbursable unless the reason for the "no-show" is business related or due to emergency or other unforeseen and unavoidable circumstances. Laundry and dry cleaning may be reimbursed for stays of 4 or more days at a maximum of $8 per day. The following expenses are considered personal and are NOT reimbursable: • Salon, spa or personal grooming services, such as barbers, beauticians, manicurists, shoe shines, or massages. • Honor bar charges or fees to use extra -cost facilities such as health clubs. • Additional charges for room upgrades, poolside rooms, or special floors. • In -room movies. • Laundry or dry-cleaning services (less than 4 days). Meals Business Activities The Town will reimburse an official or employee reasonable expenses for meals when they are conducting Town business activities. (See also entertainment). Receipts for meals must be included with the expense report. If several officials and/or employees dine together when they are conducting Town business activities, only one official or employee should pay the bill, and ONLY that person should submit an expense report for reimbursement, listing the names of all officials and employees covered by the charge. Business meals should be reasonable. All parties included in the business meal should be listed on or with the receipt. Travel Meals —Overnight Stay Officials and employees in travel status on Town business will be reimbursed for actual expenses, but not more than the per diem rate for meals. Reimbursements will be made in accordance with the Federal State Department per diem daily amounts as published on the GSA website. Per Diem rates vary by state, city and county. For a list of current per diem rates refer to www.gsa.gov, Policy & Regulations > Travel, Transportation, & Relocation > Travel Management > Travel Management Policy, Per Diem > Per Diem Rates then select the appropriate year and state. 7 For example, the maximum per diem for meals and incidental expenses, including taxes and tips as of January 2011 in Washington DC $71; Denver $66; Dallas $71; and San Diego $71. If meals are pre -paid by the Town (i.e. as part of a conference registration) or when meals are paid by any other source such as vendors, the per diem must be pro -rated by deducting the appropriate amount of the meal as listed at the "meals and incidental expense breakdown" link found at the GSA web site. For example, the per diem for San Diego is $71 and the breakdown is $12 breakfast, $18 lunch, $36 dinner, $5 incidentals. If travel days are less than a full day, the per diem for those days is pro -rated according to the following table: Time Interval De arture Return Before 11:00 am Full Day Breakfast Only 11:00 am — 3:00 pm Lunch & Dinner Breakfast & Lunch 3:00 pm — 8:00 pm Dinner Only Full Da After 8:00 pm Incidental Amount Only Full Day Travel begins when the employee leaves their home or office for their trip destination. Travel Meals —Extended Day The Town will reimburse for meal expenses incurred during extended day travel if the extended day is at least 12 hours, causes the traveler to be away from home during the evening meal time and does not require an overnight stay. (Le. employee departs at lam for a meeting in Keystone and returns home at 7pm). Alcoholic Beverages The Town's general policy is that it does not reimburse expenses for the purchase of alcoholic beverages, and officials and employees shall not use aTown-issued credit card to purchase alcoholic beverages, excepting only limited instances where a purchase is made at or for an economic development activity where the Town is strategically marketing itself to a third party, and then the purchase shall be only by or with the express prior consent of the Town Manager, Spouse/Dependent/Accompanying Person Travel expenses for transportation, lodging, entertainment or meals for spouses or other persons accompanying employees on Town travel will NOT be reimbursed. These expenses, if paid by the Town for conference registrations or any reason, must be reimbursed to the Town. Tips Reasonable and appropriate tips to porters, skycaps, bellhops, maid service and similar service providers are reimbursable (i.e. $1 per bag, $3 per night). Because receipts are not customary for such tips, receipts are not required. 0 Tipping is limited to low for wait staff, drivers, and other service personnel. E Travel Incentives Travelers may keep points accumulated during business travel though the participation in airline, hotel or rental car promotion programs. However, the traveler is responsible for any fees, dues, administration costs and any other costs associated with membership in such programs. Any associated membership fees or club/lounge fees are NOT reimbursable. 10 NON=REIMBURSABLE EXPENSES The Town DOES NOT reimburse for the following expenses: • Airline clubs, including membership fees and related charges • Automobile repairs, regardless of circumstances • Babysitting, regardless of circumstances • Charitable contributions • Clothing, other than required safety items, or Town provided items, regardless of circumstances • College/university alumni dues • Computer hardware or software, either new or upgrade • Credit card fees, including late charges and other charges • Gifts of any kind, regardless of recipient • Housesitting, regardless of circumstances • Lost luggage expense (must recoup via airline) • Parking tickets and traffic fines, citations or violations • Passport and visa fees • Pet boarding/sitting • Political contributions • Reporter services of any kind • Side trips • Stationery items including books/magazines while traveling • Spa, salon or personal grooming services • Toiletries or medications, regardless of circumstances • Travel accident insurance • Non official or employee expenses The above list is not exclusive, and please also note items specifically listed in previous sections as being non -reimbursable. For questions regarding whether an expense is eligible for reimbursement, contact the Finance Department. 11 Travel Preference Form Return completed form to Travelers Name: Legal name as it appears on passport or other government issued photo ID (if different from above): Phone: work Airline Carrier Preference: _ Seat preference: Aisle Frequent Flier Information: Carrier: Carrier: Carrier: Hotel Preference: Smoking Close to Elevator Double Other Special Room Needs: Hoteto A Information: Hotel: Hotel: Hotel: Special Dietary Needs: Window Number: Number: Number: Non Smoking King Number: Number: Number: cell Do you prefer to travel the day prior to the event? yes no Emergency Contact: Name/Number/Relationship: Additional Information: home 12 AUTHORIZATION TO TRAVEL Return completed form to the Department of Finance and Administration IN -STATE ❑ OUT-OF-STATE ❑ Individual Requesting Travel: Other Persons) Sharing Transportation: Destination (s): Conference Dates: Date Travel Begins: Date Travel Ends: Purpose of Trip: Will Any Personal Travel Be Involved? (Please Describe): Registration Fees: Conference Website (if applicable): (Attach registration/conference information and agenda) Approved Department Head Signature Disapproved Department of Finance Signature Date Date copy of ,.Town of Firestone. Expense Reimbursement Policy) 13 Town -Issued Credit Cards Purpose The goal of the Town's credit card policy shall be to ensure compliance with the Town 's Purchasing Policy and responsibility and accountability in the use of Town - issued credit cards by Town employees. Eligibility Employees A cardholder must be an employee of the Town of Firestone. It shall be at the discretion of the Department Head responsible for the department and the Director of Finance to determine which employees are eligible to be cardholders. Credit Card Limits It shall be at the discretion of the Department Head responsible for the department and the Director of Finance to establish each cardholder's per transaction and/or per - month limits, provided that these limits are consistent with the Town's Purchasing Policy and available credit line. Transactions Not Permitted The following transactions and uses of Town -issued credit cards are not permitted, and shall be considered to have been made in contravention of this policy: • Splitting of total purchase cost, singly or between or among cardholders to avoid transaction limits. • Personal purchases. • Any non -Town use. • Cash advances, money orders, bank drafts, etc. • Payment for temporary help. • Payment for maintenance contracts, long-term agreements, rentals or leasing of equipment (with the exception of short-term vehicle rentals required for travel purposes or equipment needed for special events). Any unauthorized use of aTown-issued credit card will be considered an improper use of government funds and will be subject to appropriate disciplinary action. Alcoholic Beverages The Town's general policy is that it does not reimburse expenses for the purchase of alcoholic beverages, and officials and employees shall not use aTown-issued credit card to purchase alcoholic beverages, excepting only limited instances where a purchase is made at or for an economic development activity where the Town is strategically marketing itself to a third party, and then the purchase shall be only by or with the express prior consent of the Town Manager. Cardholder Responsibilities Each cardholder shall have the following responsibilities upon receipt of a sued credit credit card: • Use the Town credit card in accordance with this Policy and the Town of Firestone's Purchasing Policy • Ensure purchases are made in accordance with their signing authority, area of responsibility and departmental budget. • Ensure proper coding of expenditures. • Notify the Director of Finance and their Department Head if there are problems with the credit card, the card is lost or stolen, or any other situation arises that would require notification to the Director of Finance and Department Head. • Notify the issuing financial institution immediately if their card is lost or stolen. • Log any item in dispute with the issuing financial institution as soon as possible. • Retain and submit to the Finance Department accurate records including transaction records and the accompanying detailed receipts. Cardholder shall submit all receipts within three business days of charge to Accounts Payable, with a written description of the Town business purpose and attendees if applicable. • Cardholders are NOT to make direct payment on the credit card account for personal purchases made in error. If this occurs, Accounts Payable is to be notified immediately and reimbursement is to be made payable to the Town of Firestone. Department Head Responsibilities Each Department Head shall have the following responsibilities upon approving the issuance of a Town of Firestone credit card within their department, to be exercised by the Department Head and/or his or her designees: • Provide a written or electronic request, requesting the Director of Finance to obtain a credit card, within the prescribed limits, for an employee. • Exercise discipline in cases where a cardholder violates the provisions of this Policy. • Immediately inform the Director of Finance in those cases where abuse or irregularities are known or suspected. • Report a lost or stolen credit card to the Director of Finance, and document the incident. Initiate a request for a replacement card. • Review and reconcile the amounts expensed under the credit card to the appropriate account and identify any unusual transactions. • Act as or appoint staff members) to act as the card coordinator to monitor and control the use of all Town -issued credit cards for the Department. • Advise the Director of Finance or designee when an employee is terminated or no longer requires a credit card. • Ensure all purchases are made in accordance with available departmental budget and individuals are operating within authority. • Follow up with the appropriate employee and respond to the Director of Finance as required on any items chosen for random audit testing. Director of Finance and Administration Responsibilities The Director of Finance shall have the following responsibilities regarding the Town - issued credit card program, to be exercised by the Director and/or his or her designees: • Act immediately upon receipt of advice that abuse or irregularities are known or suspected. • Maintain records of all cardholders. • Where required, notify the issuing financial institution of transaction errors/disputed charges and follow up on outstanding items on a periodic basis. • Ensure all card statements are reconciled by the appropriate employee, signed off and submitted on a regular basis. • Follow up with Department Heads as appropriate to investigate unusual transactions. • Cancel a card when the cardholder is separated from employment, when a Board Member's Board service ends, or when at any other time a cardholder's card privileges are terminated. • Follow up with the issuing financial institution on lost/stolen cards to confirm the card is cancelled. Reconciliation and Payment A Town -issued credit card carries corporate liability. Invoices will be paid by the Accounts Payable Department. Cardholders will not be required to pay the monthly statement using their own funds, except that the Town may require reimbursement for charges incurred for personal or unauthorized use. It is required that all receipts for goods and services purchased be retained. If goods or services are purchased via phone, mail or online, ask the vendor to include the receipt with the goods when the product is shipped. Process of reconciliation: I. Statements will be received by the Finance Department and reconciled against receipts for accuracy and proper coding. 2. All receipts will be maintained by the Finance Department for audit purposes. 3. Although payment of the invoice will be made by Accounts Payable, activity may be reviewed at any time. Disputed Charges, Returns, and Assistance In the event of disputed charges, or if a cardholder has any specific questions, the cardholder should contact the appropriate vendor or financial institution directly and notify the cardholder's Department Head and the Director of Finance. In the event there are returns, the cardholder must check to ensure credit notices are issued by the vendor, and provide the credit slip to Accounts Payable. If a credit slip was not obtained, attach other documentation explaining the return. If a credit does not appear by the second subsequent statement, Accounts Payable will notify the cardholder and the cardholder must contact the vendor or financial institution directly to rectify. The cardholder must also advise the cardholder's Department Head and Finance Department if there is a dispute. The cardholder must ensure that all required steps to register a dispute are followed. Any charge to be disputed must be identified within 30 days of the transaction date or when notified by Accounts Payable. The Cardholder is responsible for the transactions identified on the statement. If a review is conducted on a cardholder's account, receipts must be produced and/or other proof that the transaction occurred. If an error is discovered, the cardholder is responsible to show that the error or dispute resolution process has been resolved. Lost or Stolen Cards The card assigned is the property of the Town of Firestone and should be secured as a personal credit card would be. If the card is lost or has been stolen, or if the number becomes the knowledge of someone else, the cardholder must immediately notify the cardholder's Department Head and the Director of Finance. Once a card is reported lost or stolen, the card will no longer be accepted. Prompt action in these circumstances can reduce the Town of Firestone's liability for fraudulent charges. TOWN OF FIRESTONE CREDIT CARD AGREEMENT DEPARTMENT CREDIT CARD NUMBER: xxxx-xxxx-xxxx- NAME OF EMPLOYEE: Although this card ending in is issued in your name, it is the property of the Town of Firestone and must be used in accordance with the Town Is policies, procedures, and guidelines. By signing this Agreement you acknowledge that you have received the card indicated above and agree to comply with the following terms and conditions. I. This card is provided to you based upon your need to purchase elated goods goods and services in the course and scope of your duties or employment with the Town of Firestone. This card may be revoked at any time based on a change of assignment or location. II. This card is for business -related purchases only. Any use of this card for purchases of a personal nature is strictly prohibited. III. You are the only person entitled to use this card and you are responsible for all charges made against it. IV. Any unauthorized use of this card will be considered an improper use of government funds and will be subject to appropriate disciplinary action. V. This card must be used in accordance with all Town policies, procedures and guidelines respecting government purchasing and the use of cards as such policies, procedures, and guidelines may from time to time be issued and amended. VI. An employee must return his or her Town -issued credit card immediately upon separation from employment, or upon request at any other time by the Town Manager , Department Head, or the Director of Finance. As the holder of this card, you are responsible for its protection and safekeeping. If this card is lost or stolen you are required to contact your Department Head and Director of Finance immediately. Signature of Cardholder Date