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26 Vehicle AllowancesOUNCIL AGENDA ITEM BRIEFING Submittal Date: Originaring Department: Presented By: Agenda Item No.: 11 /06/08 Ciry Council Council Members Brown, Kear, 26. Council Date: Pickle 11/10/08 RECOMMENDED MOTION: BACKGROUND: Council Members Brown, Kear, and Pickle requested that a discussion of vehicle allowances be placed on the agenda for discussion. 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 typically provide this transportarion 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. Vehicle allowances were eliminated in the FY 2006-07 budget except for the City Manager, Police Chief, Fire Chief, and EMS Director. In February staff evaluated the appropriateness of Paris' vehicle allowances, examinuig three specific questions: 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 dury to honor such agreements in order to maintain its integrity and credibility. Prior to the 2006-07 fiscal year, ten 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 uutial 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. [BACKGROIJND CONTINUED ON NEXT PAGE] BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Comparison of vehicle allowances, original and proposed; Five-year total cost of ownership tables for Camty, F.xnlorer_ F-150_ Imnala_ and Taurus: Generic annual vehicle cost table. ACTION: BUDGET INFO: ❑ Financial Report ~ Minute Order Expense $ ❑ Department Report ❑ Resolution Budgeted Amt. $ ❑ Presentation ❑ Ordinance y'I'D Actual $ ❑ Public Hearing ❑ Other Acct. Name Car Allowance Acct. Number xx-0302-xx-xx FISCAL NOTES: REVIEWED AND APPROVED BY: E Administration E City Clerk ❑ Community Development ❑ EMS/IT E Finance ❑ Fire ❑ Municipal Court ❑ Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities Revised 2/04/08 . 1100356 T . - . i T _ - _1. [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 ten positions previously xeceiving allowances and in the survey, the allowances for seven of them are below the survey average and two are above. During the last discussion of this item in the spring, Council directed staff to continue to pay the amounts shown on the following tables for those positions that had been receiving them (i.e. all department heads and Assistant Ciry Attorney, excluding the City Attorney, Library Director, and Utiliries Director). However, those receiving the allowances were to maintain monthly logs to be reimbursed mileage. The mileage amount is then deducted from the total allowance and the balance paid as salary. Although the employee receives the same amount in total each month, the reunbursement amount reduces the employee's and city's payroll tax and retirement costs. llr~n7~^ _ . . . 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