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CITY OF PARIS, TEXAS CITY COUNCIL AGENDA REQUEST , MEETING DATE: January 28, 2008 ~Action ❑ Discussion ❑information ❑Refer to: SUBMITTED BY: Kevin Carruth, City Manager DESCRIPTION: Provision of vehicles allowances for certain employees BACKGROUND INFORMATION: Governmental and non-governmental organizations realize the need for certain staff to travel outside the office on a regular basis in the performance of their duties. Organizations typically provide this transportation through (1) a pool vehicle for multiple employees to use, (2) providing a vehicle for the employee's exclusive use, (3) reimbursement for mileage actually driven, and (4) a flat monthly allowance paid regardless of actual miles driven. Vehicle allowances were eliminated in the FY '06-'O7 budget (except for the City Manager, Police Chief, Fire Chief, and EMS Director). During the FY'O7-`08 budget process Councit budgeted for vehicle allowances for certain employees but instructed the City Mana er not to implement them for at least 90 days while the merits of vehicle allowances were studied. In evaluating the appropriateness of Paris' vehicle allowances, three questions were examined: 1. Was a vehicle allowance or vehicle part of the employee's original job offer? A job offer is a promise or agreement, regardless if it is actually reduced to a written contract. The City has a duty to honor such agreements in order to maintain its integrity and credibility. Prior to the FY '06-'O7 fiscal year, 10 employees (all department heads except for one) received vehicle allowances or a vehicle. Of these, a vehicle allowance or vehicle was part of the employee's initial job offer for seven of those positions. 2. Are current and proposed vehicle allowances internally equitable? The duties of various positions require different levels of travel and should be compensated accordingly. Although the only way to verify actual mileage driven is for the employee to maintain a mileage log for at least 12 months, on their face the differences in vehicle allowances appear to be equitable. 3. Are current and proposed vehicle allowances externally competitive? A survey of the 10 peer cities Paris has traditionally used for comparisons was conducted to see if the proposed vehicle allowances are competitive and customary. Of the nine positions previously receiving allowances and in the survey, the proposed allowances for four of them are below the survey average and five are above.