HomeMy WebLinkAboutTR-57-96 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting: ENERAL PURPOSE AND ADMINISTRATION COMMITTEE ,
g� File#
Date: TUESDAY, JULY 2, 1996 Res # _-I
Report#: TR-5 7-9 6 File #: By-Law#
Subject: EMPLOYEE MILEAGE EXPENSES - PURCHASE/LEASE VEHICLES
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Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1 . THAT Report TR-57-96 be received;
2 . THAT Public Works staff prepare tender specifications for
leasing of a mid-size vehicle;
3 . THAT staff be authorized to issue a tender call; and
3 . THAT a subsequent report with staff recommendations
identifying actual lease cost and associated maintenance
costs, compared to current expenditures for mileage, be
forwarded to Council for approval .
BACKGROUND AND COMMENT:
At a meeting held on April 29, 1996, Council passed the following
resolution:
"THAT Report TR-32-9
p 6 be referred back to the Treasurer for
further review of the leasing costs of a vehicle to be used on
a pooled basis and for review of block funding as used by the
Regional Health Department . "
The Block funding as used by the Regional Health Department is a
reimbursement of travel expense by an assigned category based on a
flat rate allowance . This type of arrangement is included in their
CUPE Union Agreement and varies somewhat with each Local . An
example is as follows :
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RPAPER� RECYCIC 796
iH4S B PF1RtEDCN RECYCLED PAPER
REPORT NO. : TR-57-96 PAGE 2
EMPLOYEE MILEAGE EXPENSES
PURCHASE/LEASE VEHICLES
Caegoxy Km/Yr $ Amc? znt der Month
1, 000 to 5, 000 $159 . 00
5, 001 to 8, 000 $228 . 00
8, 001 to 12, 000 $350 . 00
12, 001 to 16, 000 $437 . 00
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16, 001 to 20, 000 $559 . 00
Note : Under 1000, a casual rate of 35 . 3�/km would apply
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The amount to be travelled annually is estimated and the employee
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is accordingly put into one of the above categories . There are
also provisions for annual payout at the casual rate of 35 . 3G/km
. for any kilometres driven over the maximum of the category as well
as employee payback should the kilometres be under the minimum
amount . In addition, if at least 3, 500 km annually are not driven,
the reimbursement becomes a taxable benefit .
This program has been in place since approximately 1974 and was
initially set up to cover not only travel reimbursement but the
cost of additional Insurance required by the employee while on
Regional business .
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One of the major disadvantages of this plan is that employees that
are at the lower end of any category are paid more for travel
expense than if they were paid per kilometre travelled. Example,
under this plan, an employee in category 2 that travels 5, 002 km
would be paid $2 , 736 . 00 annually, however if calculated under per
kilometre basis at 35 . 3�/km, would be paid $1, 765 . 71 . A second
disadvantage is that this type of program is administratively
complex, with paybacks, reimbursements, taxable benefits (where
applicable) and changing of positions or categories all being
factors .
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797
REPORT NO. : TR-57-96 PAGE 3
EMPLOYEE MILEAGE EXPENSES
PURCHASE/LEASE VEHICLES
Based on the 1995 Total Mileage Expenditure for Municipality of
Clarington employees, the breakdown is as follows :
Ca �go` Y <% of Emp oyee' Pd Ma eage';i
under 11000 620
1, 000 to 5, 000 260
5, 001 to 8, 000 20
8, 001 to 12, 000 50
12, 001 to 16, 000 40
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16, 001 to 20, 000 1%
Should Council wish to consider a similar plan, it would be
necessary to negotiate the arrangement with the Union.
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With respect to leasing a vehicle, it is recommended that in order
to obtain accurate, competitive pricing that a tender be issued.
As various other implications such as maintenance and storage of
the vehicle must be considered, it is further recommended that
Public Works staff prepare the tender specifications,
provide
subsequent analysis of the bids submitted, and assist in the
preparation of a subsequent report to Council comparing actual
lease/maintenance costs with current expenditures for employee
mileage reimbursement .
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798
REPORT NO. : TR-57-96 PAGE 4
EMPLOYEE MILEAGE EXPENSES
PURCHASE/LEASE VEHICLES
Respectfully submitted, Reviewed by,
Marano, H.BSc . ,AMCT. , W.H. Stockwell,
Treasurer Chief Administrative Officer
Stephen A. Vokes, P.Eng.
Director of Public Works
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