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MEMORANDUM
To: Mayor, City Council, City Manager ~.~
From: Floyd Batiste, CEO Economic Development Corporatio
Date: December 2, 2004
Subject: P.R. No. 13361; Council Meeting of December 6, 2005
Attached is P. R. No. 13361 approving a cell phone allowance plan
for EDC board members and staff.
FB:jb
Attachment
pr13361.memo
P.R. No. 13361
12/02/05 Jb
RESOLUTION NO.
A RESOLUTION APPROVING A CELL PHONE
ALLOWANCE PROGRAM FOR THE CITY OF
PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION BOARD OF
DIRECTORS AND STAFF
WHERe/kS, the board and staff of the City of Port Arthur Section
4A Economic Development Corporation use cell phones to conduct the
business of the corporation;
WHER~-&S, the EDC Board of Directors desires to utilize a Cell
Phone Program with all board members and staff receiving a Level 1
reimbursement, similar to the policy adopted by the City Council for city
employees and the City Council (attached as Exhibit "A"); and
WHER~-~,S. the EDC Board approved the reimbursement by EDC
of $75, payable once, at the start of an allowance to help defray the cost
of the phone and accessory acquisition and reimbursement of $40 per
month (Level I Approved Allowance Level) for cell phone usage at its
November 30, 2005 special meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are true
and correct.
Prl3361
Section 2. That the cell phone reimbursement plan approved by
the EDC Board of Directors is approved.
Section 3. That a copy of the caption of the Resolution be spread
upon the Minutes of the City Council.
I~-AD, ADOPTED AND APPROVED on this __ day of
A.D. 2005, at a Regular Meeting of the City Council of the City of Port
Arthur, Texas by the following vote: AYES:
Mayor
City Council
NOES:
OSCAR ORTIZ, MAYOR
ATTEST:
EVANGELINE GREEN, CITY SECRETARY
APPROVED AS TO FORM:
MARK T. SOKOLOW, CITY ATTORNEY
Pr13361
APPROVED FOR ADMINISTRATION:
STEPHEN FITZGIBBONS, CITY MANAGER
APPROVED AS TO THE AVAILABILITY OF FUNDS:
REBECCA UNDERHILL, DIRECTOR OF FINANCE
APPROVED FOR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION:
Pr13361
EXHIBIT "A"
Pr13361
$75.00
Procedure To atari a new · NOTE: Cellular phone ~lfowences will not automafioaliy follow the employee from
allowance one position to another, iThe allowance Is tied to a budgeted poelt~on and the
allowance Is paid to the J~ereon In that position, provided the appropriate
To increase an ~'doeumentstlon Ts submitted. Each change requires a review ~f appropriate
allowance cellular phone suppor'~ and the completion cf authorf2~inCLo~oatwor~o_l~ect
To decrease an reaulre.d chenoe~.
allowance o Review 2-3 months of employee bille to evaluate changes in allowance amounts.
/
To stop I. The department'e cellular phone SPOC (Single Point of Contact) must complete
en allowance the Status and Wage rolm indicating the proposed allowance.
· The form must be slgnec~ by the department director,
· The department must forward the fo~m to Finance for processing.
Responsibility Del~attmant SPOC · Maintain an accurate list of cellular phone allowance recipients and their cellular
Single Point of phone numbere.
Contact · Review requests for changes In allowance levels If approved by director.
· Coordinate department approval pro,ess for ohengas In allowance levels.
Departme'nt Dl~aato~' · Deet~atedepart~'nent'sslngiep01ntofcontact(SPOC)forthecatiularphone
program coordination. I
· Review requests for atlo~vanoes, and approve as appropriate.
· Revlew requests for changes to allowance levels, and approve as appropriate.
Finance Department · Periodically report to City Manager and Department Dlreetor~ on cellular phone
costs.
12/0112003 Cellular Phone Programs - Ce,ular Phone ^llowance Procedures (Page 1 of 2)
aS ~ppropdate.
Employ~ Su~wi~or · Pe~odleally ven~ ~at e~ploy~ is available by col u ar phone ~ufing times
or DocUment mqul~ by depa~ment. ~
D~fg~ee
· Pe~i~ally revl~Job ~rons of employees in o~er to annum that those
mcei~ng all~an~s hav~ a ~nflnuing b~Iness need ~r ~llular phone a~lce.
· Ped~ically mvlew allow~n~s mcelv~ by employees ~ d~e~ine tf adjustment
· Terminate allo~nces E~e busings needs of a depa~ment no longer require the
employ~ to maintain a c~llular phone.
Emplo~ - Pm~de the depa~ent S~OC and supe~sor ~ cu~ cellular phone numar.
· Notl~ SPOC ~d supe~t~or of any changes to ~e number OR of any
or termination of cellu~r
. Maln~ln dependable end'regular cellular sewice and m~t CI~ and depe~men~l
expe~tat~ns of employ~ who receive cellular phone all~an~s. ~ employee
moelvlng a cellular pho~ allowance MUST have a cellular phone a~ maintain
regular celtular se~ce. ~
· Maintain aellular phone bl~ls ~r at least ~lve (12) blllt~ cycles and provide them
..... (upon mqu~t) ~ depa~ental SPOC and/or
Definitions "Significant" · yEach depa~ent may dateline ~at cons~tes a "s gn fi~nt" '~ra~e and
-wh~ reimbursemen~ ia j~fified; h~ever, all mimbumemen~ mqu~m ~e wr~en
approval of the C~ Manager (CM). As a mia, a significant ove~ge ~uld be at
least 50% above an emPl0~e'a no.al usage.
"Approp~a~ cellular · An amount that i$ ~[rto ~e Ci~ a~ to the employee.
phone allowance"
Key Cantacts Pumha~ing Joseph Bmusae~, Jr., Pumhaslng Cook,near (983-8162)
Cleon Williams, Senior Pumhaslng ~ent (~3-8161)
De~ent Single point of ~aet (SPOC), as destgnaffid by the Depa~ment DIm~r
i
12/01/2003 Cellular Phone Programs - Cellular Phone A{Iowanca Pmcsd~ss (Page 2 of 2}
Frequently Asked Questions
ReplY' ..........
Date T~p!F CueS#on ,,
Allowance If an employee with a cell phone The ~mployee wfll su,bmit to the department, a_l SPOC the
levels allowance requests a higher allowance requ~[,st for
~ rate, whet are the step~ to change the description of the business uees of phone, end pre,vide
allowance? bills fpr the last year, Identifying business cells on the
bills, iT he department will review the information and
determine If the depadment will n~3ommend a higher
allowance. The department will then mute the request to
the Finance Department for review.
~ Allowance Per phone do we know cun'ent usage? Yes, We have information f~om AT&T end Nextel on per
levels Othenvise, how would I know appropriate phone usage.
: allowance to recommend?
Allowance How will the monthly phone allowance EmplOyees who are eligible for an allowance will receive
levels : occur? payn~ent once a month.
Allowance If an employee with e cell phone The employee will submit to the depa~trnental $ POC the
levels allowance requests a higher allowance requ~st for e change in allowance amount, including a
rote, and most of the calls ere incoming description of the business uses of phone. Provide bills
cells (and thus can't readily be identified for the lest year, identifying business calls on the bills, If
as business or pemonal), what are the most! calls are incoming c. alls, describe the types of ~:alls
stops fo change the allowance ? reoeiyed by the employee, and the business puq3ose of
the calls. Attest to the estimated percentage of cells that
are p.'emoce~ va. bu$inss$..
The.department will review the information and
determine if the department will recommend e higher
alloWance. The department will then route the request to
the Finance Department for review.
o~ Condition of If a position requires that an employee Individual departments will make this decision.
employment have a cell phone, how long will the
employee have to get his or her own
~. phone?
Condition of If an employee does not get a required cell In cecos where a cell phone ia a requirement of a job,
emplo?ment phone, will he or she be terminated? failure fo meet the requirement may result in disciplinary
o action up to, and Including, termination of employment,
~ Condition of Will the City make the acquisition cf a Departments determine this requirement., For some
~ emplo}'ment personal tell phone a condition for positions, · cell phone may be e job requirement. For
~ employment into some City positions? othem, It may be · convenience for the department, not a
job requirement.
City o~ Port Arti~ur Cell Phones December 3, 2003
Condition of Some staff ;re c. oncemed that they don't IndivlJu$1 deper~mente may make ecqulsltton and
employment ~eva a desire to have · personal cell main, rnenoe of e cell phone a conclltion of employment.
phone, but may be required to get one Guid, dines under the new program have been
under the p,mpceed pmgrsm. They may ester shed to ensure that employees who are required
end up paying the difference (after to ha~e a cell phone receive an adequate allowance to
allowance) out of their owh pocket for avoi~ out-of-pocket expenses for City business.
r
something they didn't really want. ,
L
Credit issues What if an employee is not eligible to get $ Man~ cellular celica provide~4 have special plans for
cell phone contact (e.g., bad credit euetdmers with pear credit. These plans include those
rating)? that limit usage to a certa~ dollar amount per month and
pre-Pa d pans that require that the user pay for cellular
sewl~e in advance. Ci~ can work with employees and
comp?y.
Eligibility Am I eligible for a cell' phone allowance? Eaohl department determines whteh positions are eligible
for a phone allOwance, based on the requirements of the
job.
Keeping Will people who ~un'ently have cell phones Yes iS ubject to department approval, an employee may
eun'ent be able to keep the phones and conve~ purci~eae his cell phone from the City. If the cell phone fs
phones them tO personal use? If they have to pay, at least $ months old. the cast to the employee will be
how would that be detei~nined? ; $20. ! If the phone I$ newer than 6 months old, the cost to
- the employee will be what the City originally paid for the
hon~,
Maintsnsnce How will icet phones or misuse of phones The ~ell phone will be the pemonel property of the
be addressed? emplbyse, and if lost, will need to be replaced at the
expense of the employee. The employee may wish to
consider buying cell phone insurance from his service
~mvlder, Misuse of cell phones can be addressed
through ~urmnt pemonnel policies and procedures.
Mainte~ance Will there be a poliCy for misuse like cell Currant City personnel policies should address these
phones on dty time to conduct personal iesues.
business, or accidents in city vehicle while
on cell phone?
Open records Will the new program waive the open The records ate new the employee's personal records.
records requirements? I don't know how not the City'S public records.
the open reCords obligations will ever go
away regan~le~ of how employees ara
assigned cell phones since the (;aris ~till ,
pertain to City bcelneea.
Pagers What about getting pager/phone/redio At this time, only phones sm being considered- Pagers
combin~on devices Instead of just cell sro provided through the City beceuea the City requires
phones under this new policy? specific fun~onality for the pagers. Cell phone
technology does not have the functionality provided by
pagem (examples: group paging; direct connect to the
transmitter); and, these devices (and the services they
provide) are extremely costly.
Personal uae Will employees be able to uae the call The pu~ose of the phone is to conduct business fOr the
phones for pemonal phone calls? Dc City.: The employee may also make personal cells on the
these cells need to be documented? phone, The calls do not need to be documented. If the
employee request~ an increase In the phone allowance,
the employee must provide t~Nelve months of bills, with
business calla identified.
City of Poff Arthur Cell Pl~ones Deeember 3, 2003
Phone What klnda of records will employees need I The e)mpfoyee should keep up (o twelve months of
records to maintain? Do they need to turn them In meodds on hand. The employee must turn in these
each month in order to get the monthly records if the employee requests an increase in the
phone allowance? allow inca.
Program When does the poll~Y go into effect? Upo~ approval by the City Manager and Council
dot,lis
Program What is the overall concept of using a The ~llowence approach minimizes the level of
administrative effort required for administering the
lets/is : stipend or allowance approach to handle program and reduce the overall cost for the City.
cell phoneS? What benefits are
anticipated?
Program This will certainly save sdrninistratJve ttme. Agreed. This savings will allow staff to focus on ether
details Staff spends more time than they should tasks[
trying to get employees with City cell
~hones to highlight and pay for personal
Surplus What does the City plan to do with all the . Any PhoneS remaining with the City w/Ii be auctioned off
phones phones? I heard about a program where along with other surplus items owned by the City.
Inactive, but.working, phpnes could be
donated to the Battled Women's Center
who gives them to their clients. They don't
have to be on any calling plan to be able
Tax Effects As an allowance, will employees have to Yes, this is taxable income to the employee. At the
pay taxes on it since it will be additional same time, the employee has uae of the phone for both
ncome? Does this mean that the amount business end personal use.
the employee receives is discounted by
he taxes they must pay (assuming that
many of the employees take the standard ,
deduction).
Tax Effects -tae the City considered the tax effects on Yes. The City has provided, in each allowance level, an
the value of the allowance in paying the additional amount of money (In excess of most market
actual phone bill? rate Plans) to address the Issue of taxes being added to
celt phone bills.
Termination If an employee is required to have a cell NO. he phone service is · personal oblig~ffon..
of service phone es part of his job, what happens empk~yee moves to · new job, or if he/she terrain s
when he moves to another position - i~ empl~/ment with the City, the employee may decide to
he/she stuck with the remainder of the keep the service or to tam~inate. If the employee does
contract? have time left on his or her service contract, and must
pay an early service termination fee, he/she may present
that documentation and request reimbursement for the
remaining portion up to $10 per month for up to 12
months. The employee has 60 days after the termination
or job change to document the early service termination
fee.
Termination What if an employe~ quits mid--too, nth? Or, I Since the allowance is paid monthl,y., the allowance
of service what if en employee s cell phone is ~ would terminate with the employee a termination or when
dlsconnested? WIll the employee get paid the department completes an Employee Status and
for the full month or a pro rata portion? Wage form.
City of Pert Arthur Cell Phones December 3, 2003