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[BACKGROUND CONTINUED] 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 axe below the survey average and five are above. It should be noted that a recommended allowance for the Utilities Director has been added. Also the expense and budgeted numbers below are given on an annual basis to avoid confusion even though actual car allowances for most of the employees involved will cover only 9 months of the year. It is recommended that the allowances be granted as proposed for the 2007-08 fiscal year. This issue can be studied at length as part of the 2008-09 budget process. At the February 11 council meeting there was discussion of amending the personnel policy to allow the City Manager the discrerion to grant vehicles or vehicle allowances and that such a change would have to be by council action. Upon further review it was discovered that with the current policy (adopted February 1, 2005) Council authorized the City Manager to "...change or amend these policies within the statutory and chartex limitations to the extent necessary to more effecrively and efficiendy promote the interest of the Ciry." Consequendy, if Council desires to have vehicles and/or allowances an item in the personnel policy, then the Manager already has the authority to do so (Council would still have final say through the annual budget process). The suggested wording would be "As a form of compensarion, Director level personnel may be eligible for a take home vehicle or a vehicle allowance as determuied by the City Manager from time to time." After reviewing the total cost of ownership for several vehicles (as deternuned by edmunds.com), accounting for the payroll taxes associated with allowances, and mileage reimbursements, it is cheaper for the City to provide the proposed vehicle allowances for all eleven positions than it would be to provide vehicles for just seven. `'"y r"'" Revised 2/04/08