HomeMy WebLinkAboutTR-32-96 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# L(>ri
Date: MONDAY, APRIL 22, 1996 Res. #
Report#: TR-32-96 File#: By-Law#
Subject: EMPLOYEE MILEAGE EXPENSES - PURCHASE/LEASE VEHICLES
Rec®mmendatl®ns:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1 . THAT Report TR-32-96 be received for information; and.
2 . THAT Council consider the lease of one vehicle on a trial
basis to be used as a pooled vehicle .
BACKGROUND AND COMMENT
As part of the annual budget process, a review has been conducted
of the total annual expenditure paid to employees who utilize their
personal vehicles for Municipal business .
In accordance with the Union Collective Agreements and the
Municipality' s Social Contract obligations, the 1995 mileage rates
paid were as follows :
• . 30 cents per kilometre up to 5000 kilometres
• . 34 cents per kilometre + 5000 kilometres .
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Note, effective April 1, 1996, the rate of . 34 cents per kilometre
applies regardless of the total kilometres travelled in accordance
with the pre social contract conditions .
As a potential cost saving measure, staff have done some
preliminary investigation, with respect to leasing or purchasing of
vehicles for staff use, while on Municipal business, versus the
RPAPERD RECYCLE
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SI PRINtEDW RECYCLED PAPER � _
REPORT NO. : TR-32-96 PAGE 2
EMPLOYEE MILEAGE EXPENSES -
PURCHASE/LEASE VEHICLES
current method of paying the employee mileage to use their personal
vehicle . The approximate associated costs for each of these
alternatives are identified as follows :
MISCELLANEOUS OPERATING COSTS
Maintenance $ 100 . 00
Safety Inspections $ 100 . 00
Washing Vehicle $ 200 . 00
Fuel $1, 000 . 00
Insurance $ 300 . 00
TOTAL ANNUAL MISC. OPERATING COSTS $1,700 .00
ANNUAL LEASE COST
Yearly cost (includes G.S .T. $5, 100 . 00
rebate) based on 36 month lease
and list price of $15, 000 . 00 (mid-
size vehicle)
Plus Annual Misc . Operating Costs $1, 700 . 00
ITOTAL ANNUAL LEASE COST $6, 800 . 00
LEASE VS PURCHASE COMPARISON
Total Lease Price $ 5, 100 . 00
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x 3 yrs .
$15, 300 . 00
_ +7, 350 . 00 Residual value
ITOTAL LEASE PRICE $22, 650 . 00
TOTAL PURCHASE PRICE
$15, 000 . 00
Residual Value is lease buy-out at 36 months which is
49% of list price
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REPORT NO. : TR-32-96 PAGE 3
EMPLOYEE MILEAGE EXPENSES -
PURCHASE/LEASE VEHICLES
The largest claim is for the By-law Officer in the amount of
$6, 135 . 24 . This amount translated into 1996 dollars is $6, 336 . 24,
which is approximately 7% lower than the annual cost to lease a
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vehicle . The other significant claims relate to the four
building/plumbing inspectors at an average of $4, 250 . 00 each.
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Alternatively, Council may want to consider the option of setting
up a car pool, whereby one or more vehicles are available for
employee use while on Municipal business . The building/plumbing
inspectors are generally in separate areas of the Municipality
daily, consequently, it may not be productive to operate on pooled
vehicle arrangement for them alone. One vehicle for shared used
between the Parking Enforcement Officer and Building Inspectors may
be worth while on a trial basis . This vehicle could be available
for sign out as required or be assigned on a regular schedule,
whichever method is practical and economically efficient . Further
investigation of this alternative would be required by the Public
Works Department, as various other implications must be considered,
ie : storage of vehicles .
Respectfully submitted, Reviewed by,
arie Marano, H.BSc . ,AMCT. , W.H. Stockwell,
Treasurer Chief Administrative Officer
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