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Home My WebLink AboutTR-80-93 ye- CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# Date: October 4, 1993 Res. # 1-3), Report#: TR-80-93 File#: By-Law# Subject: KILOMETRE REIMBURSEMENT RATE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That report TR-80-93 be received, 2 . That the Town's mileage rate for staff and Members of Council decrease from $0.34/km. to $0.30/km. , and be approved as the Town's policy effective November 1, 1993, and 3. That the rate reduction in recommendation #2 not apply to kilometres travelled in excess of a 5000 kilometre limit, and 4 . That the reduced rate be maintained until the earlier of January 1, 1996 or the removal of the Provincial restrictions under the Social Contract Act. BACKGROUND: At the recent Social Contract discussions with CUPE and the non- affiliated employees of the Municipality of Clarington, the parties involved agreed to several areas being considered in order for the Municipality to achieve the financial targets determined by the Province. SURVEY OF AREA MUNICIPALITIES The area municipalities within the Durham Region were surveyed to determine whether there has been consistency in the application of a mileage policy and to determine the best rate for the Municipality of Clarington. None of the municipalities were planning to change the mileage rate as a result of the social contract negotiations . The results of this survey are summarized in Schedule A attached 701 . . 3 R41S 1,1 CR.RED U4 RECYCLED PA PC A TR-80-93 Page 2 REGION OF DURHAM'S POLICY The Region of Durham's policy on mileage for staff differs from those of the other municipalities surveyed. They have adopted a flat rate policy for employees who must have a car available at all times to perform their duties . Any employee who is expected to drive less than 1000 km. per year for their job will be reimbursed for each kilometre driven at the rate of $ . 353 per km. However, any employee who is expected to drive greater than 1000 km. per year is paid a monthly flat rate which increases as the expected kilometres increases. The flat rates in effect on January 1, 1993 are as follows: Expected Annual Travel Monthly Flat Rate 1,000 km to 5,000 km $159 .00 5,001 km to 8,000 km $228 . 00 8,001 km to 12,000 km $350 . 00 12,001 km to 16,000 km $437 . 00 16,001 km to 20,000 km $559 . 00 i The reasoning behind this flat rate policy is that those employees that must have a car for their job must provide for additional insurance coverage on their vehicle, which the casual driver rate would not cover. This policy also states that any driver who drives in excess of his/her category determined category will be paid the casual rate of $ . 353 per km. for any excess mileage. Also, any driver who drives less mileage than his/her category shall pay back to the Region the casual rate per km. for all kilometres less than the category calls for. With the exception of the Building and Plumbing Inspectors who travel an average of approximately 7,000 kilometres the majority of the Municipality of Clarington's employees would normally drive less than 1000 km in a year in order to perform their duties . Therefore, at the present time adopting a flat rate policy is not recommended, however it will be kept in mind for j future reference and consideration. THE COLLECTIVE AGREEMENTS I The collective agreements between the municipality and the C.U.P.E. locals 74 inside and outside, have negotiated the kilometre reimbursement rate through the collective bargaining process. The Unions have, however, agreed in the social . . . 3 -102 i TR-80-93 Page 3 contract local agreement to a reduced rate as a cost cutting measure to help meet the target total imposed on the Municipality through the Social Contract Act. The Clarington Professional Fire Fighters Association, Local 3139, Collect Agreement refers to the Corporations ' reimbursement rate as their applicable rate. The Social Contract restrictions are imposed from June 1993 until March 31, 1996 . The Municipality's fiscal year runs from January to December. It is therefore recommended that the rate be reinstated at the previously negotiated rate of $0. 34 cents per kilometre effective January 1, 1996 . There have been concerns raised by some staff that the unilateral reduction of the reimbursement rate would adversely affect some staff more that others . Based on an average annual kilometre reimbursement value of 7,000 kilometres the annual impact to these individuals of a .04 amount reduction would be approximately $280 . It was for this reason that the Region of Durham's policy was reviewed. However, the Region of Durham's policy in it's entirety appears to be premature but Council may wish to consider allowing any employee who travels over 5, 000 j kilometres to continue claiming the $0. 34 cent reimbursement rate for any kilometres travelled in excess of a 5,000 kilometre limit. RECOMMENDATION As shown in the survey of area municipalities, the Municipality of Clarington's reimbursement rate is one of the higher rates in the Region of Durham. Therefore, as a contribution to the Social Contract target total and in order to be comparable to the other municipalities, it is recommended that the Municipality of Clarington temporarily reduce its kilometre reimbursement rate for all staff and the Mayor and Members of Council from $. 34/km to $ . 30/km for the period of November 1, 1993 to December 31, 1995 . Respectfully submitted, i I rie Marano, H.BSc . , AMCT, Treasurer. i MAM/LS/pp 703 Schedule "All Municipal Survey of Mileage Revised .... ....... ... ............... .... .............................. .. .... . ... .................... . .......... ....................... ... .. .... .. ......... ................. .................... . .................... ......... ................ ..... .. ........ . ................. ......................... ............. ............- ...... ........................... .. ................. .... ..................... ............. . ........................ . ..................... .. ... .. ........ ... .............. ................................. ........... ..... .................. ................ ................. ...... ............. :<:::::: :::»:::<:::>::::>::::>::::::>:::<:::»:::<:>::::::»:::.............. ... .. ............................ .... . ...... ........ .... ...... . ......................... ....... .. ... ............................ ........ . ... . ................. ...... ..... .......... ............................ ............. . ...... .. ................... ....... .................. .......... .............. ..................... .............. .......:-- ............ ........... ............................. ................. ........... ........... ........... ........ ..... ...... ........................X:......... .... . ............. .. ........... ........................ .................................. ............................... ............... ........... .......................... . .............................. ............. . ...................... .......... .... ............................ ................................. ................................... ........... ................%. '.%.: :::::..X:X ... .............. Ajax .30 .30 .30 Town Car Brock .30 $250/month** $125/month** .30 Clarington .34 .34 .34 .34 Oshawa .322 City Car .322 City Car Pickering .301 Town Car .301 .301 Region .353 Car & .353 Chauffeur Seugog .35 $2500/yr.** .35 Town Car Uxbridge .30 $5000/yr.** $1000/yr.** $174.56/mth. Whitby 1 *303 .303 .303 .303 In some municipalities a town car is given in place of reimbursement of mileage,with all of the fuel being supplied by the town. Several of the Municipalities give the Mayor and Council allowances for mileage. Any costs over this allowance are the responsibility of the Mayor and Council. At the City of Oshawa the Mayor & Members of Council have their choice of using a City Car or their own car. If they use a Car Pool Vehicle for City Business they receive no reimbursement. If they use their personal vehicle they get reimbursed at the staff rate. Schedule "All Municipal Survey of Mileage ............ .......... ................... .......... . . ...................... ................... ................ . ................... ............... .... ...... ................ ................ ..................... ........ .............................. ....... *"*'*"."*":............. ......... .. ....... ... .. ......... ............. . . ............... .. ................. . ............ ... ........ . . ....... ... ..... . . . ........................ ............ .............. . . ............. ............. Ajax .30 .30 .39/ Town Car -7- Brock .30 $250/month** $'125/month** .30 Clarington .34 .34 34 .34 Oshawa .328 322 City Car . Pickering .301 Town (;a� .301 .301 Region .353 . .353 7 V Scugog .35 $�2 00/yr.** .35 Town Car Uxbridge *30 /$5000/yr.** $1000/yr.** $174.56/mth. Whitby .303 .303 .303 .303 In some municipaliti a/town car is given in place of reimbursement of mileage,with all of the fuel being supplied by the town. Several of the Mnicipalities give the Mayor and Council allowances for mileage. Any costs over this allo)61aince are the responsibility of the Mayor and Council. / 04