Placentia staff propose tighter travel rules, require receipts for elected officials and restrict P-card meals

Placentia staff presented proposed changes to the city's travel policy (No. 344) and the procurement-card (P-card) policy (No. 445) at the Oct. 1 study session, urging clearer rules and stronger reconciliation controls. Finance Director Jennifer Lantman said the travel policy will remain tied to U.S. General Services Administration (GSA) per diem rates, which staff recommend because they are updated annually and avoid additional tax consequences for travelers. "If there is a higher per diem rate that's approved, then the difference between the GSA rate and what is submitted is considered taxable income for that employee," Lantman said.

Staff proposed several specific changes: (1) redefine per diem so it covers meals and incidentals only (removing ground transportation from the per-diem calculation); (2) add language requiring elected and appointed officials to submit receipts even when taking per diem; (3) formally document past practice allowing elected officials and the city administrator to book more flexible coach fares (not business class) when necessary; and (4) restrict P-card use for meals while traveling, except for formal hosting or dignitary events. Lantman said the P-card restriction aims to prevent overlapping reimbursements and reduce the reconciliation burden on finance staff.

Council members asked implementation questions about the flexible fare allowance, enforcement and reconciliation timelines. Lantman clarified that the policy would allow "a more flexible fare that would allow for...rescheduling your coach seat" and that it is not equivalent to business-class travel. On enforcement, staff pointed to the P-card policy's reconciliation deadline (a 15th-of-the-month standard in the proposed text) and said repeated noncompliance would result in deactivation of cards until accounts were reconciled. One councilmember said 30 days might be more practical for some heavy users, and staff said extensions could be considered case-by-case.

The recommended next steps are that the council review the proposed language and direct staff to return a red-lined version for formal approval at a future meeting. "What staff is recommending is that you review and test the travel policy 344 as well as the P-card number 445, directing staff to incorporate any changes you'd like made to the travel policy to be brought back for approval at a future meeting," Lantman said. The study session did not adopt the policies tonight; staff sought policy direction before returning with final documents.