April 16, 1998

 To:Corporate Services Committee

 From:Margaret Rodrigues, Commissioner, Corporate Services

Michael R. Garrett, Chief Administrative Officer

Wanda Liczyk, Chief Financial Officer and Treasurer

 Subject:Office Administration and Expenses of Members of Council

  Purpose:

 To establish consistent policies and procedures with respect to office administration and expenses of Members of Council.

 Funding Sources, Financial Implications and Impact Statement:

 This report has no immediate financial implications. Implementation of the proposed policies will clarify corporate and Councillor expenditures and will be addressed as part of the regular budget process.

 Recommendations:

1. It is recommended that the policies and procedures as outlined in appendix AA@ entitled AOffice Administration and Expenses of Members of Council@ be adopted, and that all Members of Council and their staff comply with the policies; and

1. the appropriate City Officials be authorized to give effect hereto.

 Council Reference/Background/History:

 The  Corporate  Services  Committee on February 16, 1998,  received a communication (January 15, 1998) from the City Clerk advising that City Council on January 2, 6, 8, and 9, 1998, had before it, amongst other things, a motion by Mayor Lastman and seconded by Councillor Ootes respecting the Final Report of the Toronto Transition Team. Council referred all motions concerning the administration of staffing and salaries to the Corporate Services Committee.

 The Corporate Services Committee requested that the Commissioner of Corporate Services submit a report to the Committee on a policy governing the provision of extended disability, overtime, vacation, maternity/parental/adoption leave and severance allowances for Councillors= staff.

 The policies and procedures as contained in appendix AA@ entitled AOffice Administration and Expenses of Members of Council@ address this request, and outline policies, procedures and guidelines governing other administrative issues intended to facilitate the effective operation of the Council Offices.

 Comments

 Each of the former municipalities had policies, procedures and guidelines governing the administration of Council Offices. While these documents addressed many of the same issues, they contain many inconsistencies in terms of information management, administrative procedures and expenditure guidelines. As a result, a number of issues have arisen in the first three months of the new City with respect to Council Offices that have been difficult for Councillors and staff to address.

 To facilitate resolution of these issues, this report, as outlined in appendix AA@, recommends consistent policies and procedures that meet the administrative requirements of Council.

 The issues of severance for Council staff and procedures governing election year budgetting are currently being reviewed by staff and will be the subject of future reports to the Corporate Services Committee.

Conclusion:

 This report recommends guidelines in the administration of Council Office expenditures and introduces policies and procedures to be followed by Councillors. The policies recommended are consistent with those for staff. The Clerk and City Auditor have been consulted in the development of this report and support its content and recommendations.

 Contact Name:

 Barbara McEwan

Interim Lead, Council Services and Administration

392-4373

   Margaret RodriguesWanda Liczyk

Commissioner, Corporate ServicesChief Financial Officer and Treasurer

    Michael R. Garrett

Chief Administrative Officer

 OFFICE ADMINISTRATION AND EXPENSES OF MEMBERS OF COUNCIL

 This policy covers the requirements with respect to the office, travel and other expenses of Members of Council. As with all financial transactions of the City, it is expected that this policy, which includes the corporate purchasing requirements, will be observed by all Members of Council and their staff.

 Expenditures incurred by Members of Council or their staff must be for City business purposes only. Expenditures that are personal in nature or that further personal interests are not permitted.

  1.Global Budget Expenses

 City Council approved a global budget of $70,000.00 for each Councillor to cover the cost of general office requirements, communication and constituency office accommodation.

 The global budget does not cover expenses that are corporate in nature, such as sponsorships and donations. These are similar in nature to grants and considered by Council as a whole.

 The following are examples of items covered by the global office budget of Councillors:

  Staff Salaries and Benefits (in excess of the equivalent of three (3) full-time staff) Replacement Staff

Constituency Office

Constituency Meetings

Office Materials and Supplies

Newspaper/Book and Magazine Subscriptions

Office Machinery and Equipment (above standard configuration)

Conference Travel

Seminars

Postage/Distribution

Tickets for community and other events (limit of two (2) per event)

Courier Services

Printing Services

Staff Overtime

Meal Allowances

Photocopying

Staff Meterage, Parking

Transit Passes - Staff (a taxable benefit may be assessed for personal use of such passes)

Hardware and Software (above standard configuration)

Basic Telephone Expenses

Long Distance Charges

Cell Phones and Pagers

Advertising and Promotion

Taxis

Business Meeting Expenses

 2.Permitted Expenditures and General Requirements

 (a)Equipment, materials or other assets purchased for office use are the exclusive property of the City.

 (b)Limits for various purchases and other expenditures will be determined by policies approved by Council from time to time, and cannot be exceeded.

 (c)All purchases and expenditures submitted for payment must be supported by original receipts/invoices, which include a description of the goods purchased or services rendered, the cost, applicable taxes and G.S.T. registration number. The support for all purchases and payments will be reviewed and certified by the City Clerk or her designates.

 (d)Members of Council, or their designate, must approve all expenditures charged to their office budgets and submit such expenses to the Council Services Unit.

 (e)Peculiar transactions or non compliance with policies will be forwarded to the Chief Financial Officer and City Auditor for appropriate action, which may include the refusal of the expenditure claim by the Corporation.

 (f)Councillors cannot exceed their annual global office budget. Any over-expenditure of a Member's office budget is the personal responsibility of that Member and will be covered from personal funds.

 (g)Expenses will be charged to the year the goods are received or services rendered. It is important that Councillors advise the City Clerk or her designate of goods or services received prior to the end of the year, but not invoiced until the subsequent year.

(h)The City Auditor, as part of his normal duties, may perform random audits of the expenses of all City Departments, including Council Offices. Non compliance or irregularities with respect to the expenses of Members of Council will be discussed with the respective Member and communicated to the Chief Financial Officer and Chief Administrative Officer for any necessary action.

 (i)Purchases made by Members of Council will be paid directly to the supplier by the Corporation. Incidental expenses may be reimbursed to Councillors through petty cash or upon submission of a completed and supported expense report. Corporate credit cards will be available to City Councillors. However, such cards can only be used for business purposes and expenses must comply with the corporate purchasing guidelines contained herein. Further, the monthly credit card statements must be supported by receipts/invoices indicating the purchase made and its purpose (where appropriate) and be approved by the Councillor.

 (j)Purchasing documents, as specified in this policy, for all expenses incurred by Council Offices must be forwarded to the Council Services Unit in a timely manner, to ensure prompt payment to suppliers.

 3.Purchase and Payment of Goods and Services

 All purchases are governed by the Corporation's interim purchasing policy which outlines the authority required with respect to the commitment of funds and the payment of accounts.

 As is the case with City Departments, Members of Council and their staff are required to comply with the Corporation's purchasing policy and procedures.

 The City Clerk's Department co-ordinates all purchases for the Clerk's Department and Council Offices.

 The official supplier of standard office supplies is Grand & Toy. A copy of its catalogue is available with the Purchasing Clerk, Clerk's Department. The mail clerks deliver these supplies typically within one business day.

 In order to facilitate the acquisition of standard office supplies, as well as office furnishings or equipment, an Office Supplies Requisition Form is completed by the Councillors= staff. It is then forwarded to the Clerk's Department, Purchasing Clerk, with the following information:

 (i)description of the item;

(ii)quantity required;

(iii)estimated cost;

(iv)date required; and

(v)suggested supplier, (if any).

 Required items that are not shown on the list of standard office supplies will be ordered through external suppliers. Typical delivery periods for office supplies from external suppliers is two (2) weeks.

 (a)Purchases under $200.00

 Incidental expenses costing less than $200.00 in any one instance may be reimbursed through petty cash.

 In order to be reimbursed, such expenses must be processed through the City Clerk's Department, be approved by the Councillor and supported by original receipts.

 All petty cash requirements will be handled through a central petty cash fund maintained by Council Services.

 (b)Purchases $200.00 - $10,000.00

 (i)An Office Supplies Requisition Form must be completed and approved by the Councillor;

 (ii)all purchases between $3,000.00 and $10,000.00 require three (3) written quotes;

 (iii)for purchases under $3,000.00, three (3) written quotes are encouraged but not mandatory;

 (iv)staff of the Council Services Unit of the Clerk's Department will confirm the availability of funds from within individual Councillors budgets;

 (v)the Clerk's Department Purchasing Clerk will contact suppliers to obtain three (3) written quotes, where required, and will prepare a Departmental Purchase Order;

 (vi)when the supporting original receipt/invoice is approved by the Councillor, and goods have been received, payment will be made to the supplier; and

 (vii)expenditures for which a purchase order is not applicable such as books, subscriptions, or publications, must be approved by the Councillor and supported by original invoices/receipts.

 (c)Purchases over $10,000.00

(i)An Office Supplies Requisition Form must be completed and approved by the Councillor and forwarded to the Council Services Unit;

 (ii)staff of the Council Services Unit of the Clerk's Department confirm the availability of funds from within individual Councillors budgets;

 (iii)a Purchase Requisition is then sent to the City of Toronto, Purchasing, Finance Department;

 (iv)the City of Toronto Purchasing and Material Supply Division contacts suppliers to determine the best value;

 (v)a Purchase Order is issued by Purchasing and Material Supply to the City Clerk's Department authorizing the acquisition of the goods or services; and

 (vi)payment is made to suppliers when supported by purchase orders, original invoices, and packing slip or other documentation indicating receipt of goods.

 4.Printing

 A number of service delivery options are being examined for printing, therefore on an interim basis Members may continue to print at Civic Centre locations.

 All high volume Council printing (flyers, newsletters, stationery, etc....) is generally produced at No. 90 Niagara Street.

 Prior to submitting a printing request to No. 90 Niagara Street, a printing requisition form is required. Council Service Unit will ensure the availability of funds in the respective Councillor's global budget.

5.Distribution

 The City of Toronto has purchase agreements with Canada Post and various distribution companies that offer very competitive rates.

 The Council Services Unit will be contacted prior to arranging any distribution to ensure that your requirements are met at the best possible cost.

 6.Cellular Telephones/Long Distance Charges

 It is the responsibility of Members of Council to review telephone bills for their respective office and to reimburse the City of Toronto through the Council Services Unit for any personal cellular telephone or long distance expenses.

 Reimbursement of these personal expenses should be done on at least a quarterly basis.

 7.Constituency Office Expenses

 Councillors who choose to operate a constituency office should be aware of the following:

 (a)The Councillor renting the constituency office is the tenant and responsible for the tenant's obligations under the lease.

 (b)All financial and other obligations arising out of the establishment of a constituency office by a Councillor, including rent, utilities, insurance, realty taxes, maintenance, telephones, office supplies, and the rental of office furniture and equipment, are the sole responsibility of the City Councillor.

 (c)City Councillors may be reimbursed for expenses incurred under 7 (b) from their global budget, subject to providing appropriate invoices and other supporting documentation.

 (d)A signed true copy of the lease as signed is to be filed with the Clerk as well as with the Chief Financial Officer.

 Prior to entering into any agreement for a constituency office or incurring any related expenses, Councillors are to contact the Council Services Unit to ensure that sufficient funds are available within their global budgets.

 Staff at City Property Services and City Legal Services are available to assist Councillors in securing a constituency office and with the lease agreement.

 8.Consulting Expenses

With respect to consulting services, it is necessary to review the arrangement for the provision of these services in order to determine whether the proposed arrangement with the consultant has the legal status of an employee or an independent contractor.

 Given Revenue Canada's strict guidelines in this regard, Councillors must contact the Council Services Unit prior to committing the Corporation to any services or obligations with respect to provision of these services.

 Prior to incurring consulting expenses, Members of Council must comply with the following purchasing procedures:

 (i)a Departmental Purchase Order or letter of agreement must be issued for services estimated to cost between $200.00 and $10,000.00 in any calendar year;

 (ii)a Corporate Purchase Order (through City Purchasing) or letter of agreement must be issued for services costing over $10,000.00 in any calendar year; and

 (iii)purchase orders or letters of agreements with consultants must include the nature of the work performed, the hourly, daily or contract rate, term of arrangement, the anticipated total expenditure on a calendar year basis, and GST registration number.

 Please refer all requests for these types of services to the Council Services Unit prior to committing the City of Toronto.

 Payment of consulting services must be supported by an original invoice which includes a detailed description of the services rendered, the hourly or per diem rate, the number of hours or days worked and the G.S.T. registration number.

 9.Business Meeting Expenses

 Meetings held at restaurants and hotels may be claimed when the purpose of the meeting is related to the business of the City.

 Supporting documentation for luncheon and business meeting expenses must include the following:

• an original receipt;
• the purpose of the meeting;
• the names of all those in attendance; and
• the Councillor's approval

 These requirements are consistent with practices in the private sector and are in accordance with Revenue Canada guidelines.

 10. Business Parking

 Parking fees related to business meetings will be reimbursed for actual cost when the purpose and location of the meeting are noted and original receipts are submitted. Claims may be made through petty cash, or as part of a monthly expense claim report.

 11. Travel

 Members of Council are required to travel from time to time to attend conferences and seminars, or to represent the City on specific business. Only those expenses specifically relating to the Councillor will be reimbursed. Expenses for individuals travelling with a Councillor, who are not employees of the Corporation, are considered personal in nature and therefore not eligible for reimbursement.

 (a) Definitions

 (i) Conference/Seminar

 An expense relates to this category if it furthers corporate goals and involves:

• attendance at a conference, which is an event sponsored by a professional or trade association involving a series of presentations or discussions related to the purposes and goals of the association;

• attendance at a seminar, which is a compact program of not more than five working days, not necessarily offered through an approved academic institution or professional body, for an individual's professional development; and

• participation in study or inspection tours, not specifically directed by Council.

 These expenses are charged to the Councillor's global budget.

(ii)Business Travel

 Business travel is travel which is necessary to conduct the business affairs of the Corporation and is defined as:

• travel on association business by a Member of Council elected or appointed to the executive, board, section executive, task force or committee of the Federation of Canadian Municipalities, Association of Municipalities of Ontario, International Union of Local Authorities or World Association of Major Metropolises, and charged to the Council Business Travel Budget;

• travel to participate in study or inspection tours, visits or meetings when specifically directed by Council, and charged to the Council Business Travel Budget; and

• travel necessary to carry out duties directly related to a Member of Council's responsibilities as a Chair or Vice-Chair of a City Agency, Board or Commission, and charged to the related Agency, Board or Commission budget.

 (b) Conference/Seminar and Business Travel Approvals

 Note: Approvals include registration, travel, accommodation and all related expenses.

 (i)Councillors shall notify the Mayor in advance of plans to attend an event and shall seek Council approval for conference/seminar events exceeding $3,500 (Canadian funds), inclusive of registration, travel, accommodation and all related expenses.

 (ii)Business travel as defined in section 12 (a) (ii) of this policy does not require Council approval, subject to the availability of funds in the Council Business Travel Budget.

 (iii)The Mayor's attendance at events will be limited by the Mayor's budget for the year and will not require prior approval of individual events by Council.

 (c)Travel Arrangements

 (i)When attending out of town conferences or business trips, air travel will be economy class, using the services of the Corporate Travel Agent and eligible alternate travel expenses, be they by bus, train or automobile, shall be limited to the economy class air fare rate.

 (ii)When Councillors use their personal auto to attend an out of town conference, seminar or business trip, reimbursement of meterage will be at the rate of $0.36 per kilometer.

 (iii)Councillors who use their automobiles for City business are required to carry at least $1 million of public liability and property damage insurance.

 (d)Registration Fees

 Registration fees for conferences and seminars will be paid directly to the conference association. Original documentation must be provided to support the payment.

 (e)Accommodation Arrangements

 Whether for out of town conferences/seminars or for business travel, eligible accommodation will be a single standard room, at the lesser of the government rate or actual cost. An original hotel bill must be submitted to support the claim.

 (f)Pier Diem (for overnight stay out of town)

 (i)The amount which may be claimed for sundry expenses related to an out of town conference/seminar or business trip may be up to $65 Cdn. per day when in Canada and $65 U.S. when outside of the country, with no need to submit receipts.

 (ii)The number of days claimed will be the same as the number associated with the conference/seminar or business trip in question, including the day of departure and return.

 (g)Meal Allowance

 For in town conferences/seminars at which meals are not provided by the conference/seminar association and where no per diem may be claimed, a meal allowance of up to $15.00 may be claimed when supported by original receipts.

 (h)Travel to/from Transportation Terminal

 The cost of transportation from home/office to and from an air, bus or train terminal will be reimbursed when supported by an original receipt.

 (i)Administration

 (i)A Arequest to attend/travel form@ will be completed prior to attending any conference/seminar (in or out of town) or business trip. The form will provide all details of the trip, including all related costs, be approved by the Councillor, and forwarded to the Council Services Unit.

 (ii)Advances may be requested for costs not paid for directly by the Corporation. (eg. per diem, accommodation).

 (iii)An Expense Claim report, supported by original receipts, must be filed with the Council Services Unit within 10 days of return from the event. The balance of unspent advances must be remitted to the City in a timely manner.

 12.Memberships & Association Fees

 Membership fees may be charged to the Councillor's global budget when memberships clearly further municipal interests.

 Payment of these expenses will be made directly to the corporate entity whenever possible.

 13.Financial Reports

 (a)To assist Councillors in tracking their office costs, a monthly summary of expenses detailing paid and encumbered expenditures is provided. Councillors or their staff are encouraged to review these reports and report any errors to staff of the Council Services Unit as soon as possible.

 (b)A report is submitted to Council at the end of each year by the Chief Financial Officer and Treasurer, summarizing the office expenses incurred by each Councillor and identifying the cost of each individual event attended by Members of Council related to conferences, seminars and business travel, including events attended as a member of a City Agency, Board or

Commission.

 14.Staffing

 (a)Procedures

 All staffing requests must be processed through the Council Services Unit prior to the employee's start date.

 (b)Expenses

 Discretionary:

 Overtime by Administrative Assistants

 Given that Members of Council manage the workload of their staff and that lieu time is the most common form of compensation for overtime worked, any overtime expenses approved by Councillors for their staff will be charged against their individual global budget allocation, if funds are not available within the salary budget assigned to the Councillor.

Vacation

 Members of Council are encouraged to structure staff vacation schedules, where possible, at times that have the least impact on office operations. Where the Member decides to replace a staff member who is on vacation, this expense will be paid from his or her individual global budget allocation, if funds are not available within the salary budget assigned to the Councillor's office.

 Non-Discretionary:

 Extended Disability

 Members of Council do not have the ability to sustain effective office operations when a staff member is ill for an extended period of time due to the limited staff resources at his/her disposal.

 Given that Councillors may be able to sustain effective operations for a short period of time, and that the Councillor has no control over absence due to illness, where replacement staff are required to cover staff absences due to illness of six (6) consecutive business days or more, expenses will be charged to the general Council budget.

 Accrued Vacation Entitlement

 In instances where a Councillor's staff person has accrued vacation entitlements and leaves the employment of the City of Toronto, such entitlements must be paid to the employee.

 Since the Councillor has no discretion over these payments, expenses will be charged to the general Council budget.

 Maternity/Parental/Adoption Leave

 Members of Council cannot be expected to accommodate extended staff leaves without a temporary replacement.

 In order to provide for the temporary replacement of staff who are on extended maternity/parental or adoption leaves, any payments to staff who are on such leaves will be provided from the general Council budget.

 Severance Allowances

 Council staff may be given severance allowances when their Councillor leaves office or when their Councillor terminates their employment without cause.

 If a Council staff member is given a severance allowance because their Councillor has left office, the in-coming Councillor cannot be expected to absorb any of the termination costs. In these instances, expenses will be charged to the general Council budget.

 When Councillors terminate staff without cause and elect to pay notice rather then have it worked, it is reasonable to expect Councillors to cover the first 30 days notice out of their global budget. If funds are not available within the salary budget assigned to Councillors. Any termination costs in excess of this amount will be covered by the general Council budget.

 15.Council Transportation

 The regular hours of Council Transportation are 7:00 am - 8:00 pm, except on Council days when service is available until 11:00 pm.

 In order to maximize the efficient use of the Council vehicles, the following guidelines are to be followed:

 (a)Council Members and their staff are generally responsible for getting to and from work at their own expense.

 (b)Council cars should be used by Members of Council and the Protocol Division of the City Clerk's Department only when on Council business.

 (c)Guests and/or staff of Members of Council will only be permitted to use the cars when authorized by a Member of Council and only on City Council business.

 (d)Council cars will not generally be used as a delivery service if required for passenger service; however, the delivery of agendas for the City Clerk's Department is acceptable. Requests for deliveries should be limited to items of an urgent nature that cannot be made by Canada Post, courier, or by other means due to time constraints.

 (e)The use of the Council vehicles will be recorded as follows:

 (i)the names of the users;

(ii)the destination of each trip and the approximate time of return;

(iii)the actual length of time logged for each trip; and

(iv)the side uses, such as deliveries, and the number.

 16.Office Space

 When an outgoing Councillor vacates his or her elected office the incoming representative for that Ward automatically assumes possession of the vacated office and its associated inventory for that Ward.

Appendix "A"

OFFICE ADMINISTRATION AND EXPENSES OF MEMBERS OF COUNCIL

TABLE OF CONTENTS

 1. Global Budget Expenses

 2. Permitted Expenditures and General Requirements

 3. Purchase and Payment of Goods and Services3

 4. Printing

 5. Distribution

 6. Cellular Phones/Long Distance Charges

 7. Constituency Office Expenses

 8. Consulting Expenses

 9. Business Meeting Expenses

 10. Business Parking

 11. Travel8

 12. Memberships & Association Fees1

 13. Financial Reports1

 14. Staffing

 15. Council Transportation

 16. Office Space