Administrative Policy 3-04 Reimbursement of Interview and Relocation Expenses

SUBJECT: Reimbursement of Interview and Relocation Expenses for Applicants and New Employees

DATE: January 12, 2010

PURPOSE: To formalize the policy and establish procedures for the City of Lawton paying interview and relocation expenses of applicants and new employees

BACKGROUND: From time to time, it is appropriate for the City of Lawton to pay for interview expenses and a portion of the relocation expenses applicants and new employees may incur when considering relocating to Lawton. This can be a useful recruiting tool in attracting employees in specific classifications.

PROCEDURE:

A. Statement of Policy. In circumstances where the City of Lawton is unable to fill key positions locally, the city may reimburse a portion of the expenses of an interview and relocating an applicant or new employees from their residence to Lawton. This authorization shall be extended to specific classifications. Those classifications include department directors and other key positions as recommended by department directors and approved by the City Manager. The city shall reimburse the new employee up to a maximum of $5,000.00 for authorized shipping expenses of personal belongings.

B. Interview Expenses. Reimbursement for these expenses must be approved by the City Manager and will only be available to applicants residing more than 120 miles from Lawton. Reimbursement will only be available if state or national recruitment is implemented based on the criteria searches in the Lawton City Code Section 17-1-3-124 Certification and Appointment.

1. Executive & Appointed

i. The City may reimburse the applicant for one round-trip economy air fare and economy car rental to and from the airport or for personal car mileage based upon the IRS mileage reimbursement rate, not to exceed the cost of an economy air fare.

ii. The City may reimburse the applicant for up to 2 days and 1 night per diem based on the GSA Per Diem Rates.

(http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA BASIC&contented=17943 or http://www.gsa.gov/ (and click on per diem).

2. Mid-Management/Supervisory

i. The City may reimburse the applicant for one round-trip economy air fare and economy car rental to and from the airport or for personal car mileage based upon the IRS mileage reimbursement rate, not to exceed the cost of an economy air fare.

ii. The City may reimburse the applicant for up to 2 days and 1 night per diem based on the GSA Per Diem Rates.

(http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA BASIC&contented=17943 or http://www.gsa.gov/ (and click on per diem).

3. Professional/Administrative

i. The City may reimburse the applicant for one round-trip economy air fare and economy car rental to and from the airport or for personal car mileage based upon the IRS mileage reimbursement rate, not to exceed the cost of an economy air fare.

4. Labor/Trades/Technical/Clerical – none available.

C. Relocation Expenses. Reimbursement will only be available if state or national recruitment is implemented based on the criteria searches in the Lawton City Code Section 17-1-3-124 Certification and Appointment.

1. Executive

i. The City may pay for one house-hunting trip at a maximum of $500 and no more than 3 days and 2 nights based on the GSA Per Diem Rates for travel, lodging and meals for one person.

(http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA BASIC&contented=17943 or http://www.gsa.gov/ (and click on per diem).

ii. The city shall reimburse the new employee up to a maximum of $5,000.00 for authorized shipping expenses of personal belongings or 80% of the actual costs, whichever is less, as detailed below.

2. Mid-Management/Supervisory

i. The City may pay for one house-hunting trip at a maximum of $500 and no more than 3 days and 2 nights based on the GSA Per Diem Rates for travel, lodging and meals for one person.

(http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA BASIC&contented=17943 or http://www.gsa.gov/ (and click on per diem).

ii. The city shall reimburse the new employee up to a maximum of $4,000 for authorized shipping expenses of personal belongings or 80% of actual costs, whichever is less, as detailed below.

3. Professional/Administrative

i. The City may pay for one house hunting trip at a maximum of $500 and no more than 3 days and 2 nights based on the GSA Per Diem Rates for travel, lodging and meals for one person.

(http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA BASIC&contented=17943 or http://www.gsa.gov/ (and click on per diem).

ii. The city shall reimburse the new employee up to a maximum of $2,500.00 for authorized shipping expenses of personal belongings or 80% of actual costs, whichever is less, as detailed below.

4. Labor/Trades/Technical/Clerical – None available

D. Eligible for Reimbursement. Authorized shipping expenses shall be limited to the following.

1. Containers, packing, crating at origin and unloading at destination.

2. Transportation of household goods and personal effects from previous residence to new location.

3. Insurance of transit protection authorized to $2.00 per pound based on actual shipping weight.

4. Normal servicing of household appliances at tariff rates, i.e., preparation for shipment of stereos, refrigerators, or other appliances.

E. Expenses Which Are Not Reimbursable.

1. Overtime moving charges, waiting time charges, or extra pickups and deliveries, unless authorized in advance.

2. Cost of mail service, cleaning and painting at old and new residence, to include cleaning of clothes, rugs or draperies.

3. Shipping or storage of perishable or frozen foods, pets, cars, boats, campers, or other bulky articles as described in Interstate Tariff Rules, and firewood, bricks, or other building materials.

4. Removal of draperies, rugs or fixtures, removal and installation of television or FM radio antenna, television adjustment, piano tuning, utility deposits, telephone installation charges.

5. Assembly or disassembly of yard equipment such as swing sets, jungle gyms, etc.

6. Purchase of furniture or appliances needed in the new residence, and replacement of furnishings left behind in the old residence, such as wall-to-wall carpeting, draperies, or venetian blinds.

7. Losses on such items as unexpired school tuition, club fees, registrations fees, etc.

8. State or local personal property or use taxes.

F. Determination of Expenses Eligible for Reimbursement. All possible moving expenses cannot be listed in an administrative policy. With this in mind, should a new employee incur an expense which is not covered by the preceding paragraphs the decision or eligibility for reimbursement will be made by the Finance Director.

G. Damage. Claims for damages sustained in transit are to be filed by the employee directly with the carrier as soon as possible. The City of Lawton is not responsible or liable for damage. The employee is responsible for signing inventory lists at the points of loading and unloading.

H. Administration.

1. The appointing/hiring authority shall send the new employee a letter of firm offer of hire, salary, and fringe benefits with a promise of a flat offer, not to exceed the amounts listed above of reimbursable expenses. A copy of this administrative policy shall be attached to the letter. The employee shall be asked to complete the Moving Information Form (enclosure 1) and return it to the Purchasing and Contracting office, and to sign the Statement of Understanding (enclosure 2) and return it to the Human Resources Department. A copy of the letter to the new employee will be provided to the Human Resources Department, which shall place a copy of all documents in the employee’s personnel file.

2. Employees who relocate at City’s expense and resign from employment within one year shall be required to repay the City 50% of the relocation expenses provided by the City.

3. The reimbursement procedure will begin when the Purchasing and Contracting division receives an itemized statement of expenses.

4. Relocation expenses will be paid from the departmental budget of the department hiring the new employee or any other appropriate fund as designated by the City Manager.

5. The employee should contact the U.S. Internal Revenue Service or an accountant to determine the extent to which expenses that are reimbursed are allowable deductions on his/her Federal Income Tax Return. The employee is responsible for all taxes on non-deductible reimbursements.

REFERENCES: Policies of the cities of Tulsa, Oklahoma City, Norman, Midwest City, Wichita Falls, Denton, and Goodyear.

RESCISSION: This policy supersedes policy dated January 18, 1984 and June 7, 1993 and will remain in effect until rescinded.

_______________________________ __________________________

Larry Mitchell Date

City Manager

Amended, 01/12/2010