Agenda - Council - 02/11/1992 - Laserfiche WebLink

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Case # 4 UTILIZATION OF CITY VEHICLES By: Sandra Ashiey Hetltng, Finance Officer Background: Members of the Budget Committee nave asked Staff to determine when City vehicles are used for transportation to and from work by an employee and if employees also use City vehicles for personal (not business related) travel. In addibon, Staff has been asked to recommend a policy as to such use. Currently, the status ,s: Positior~ Vehicle Authorized Use ~~ '~.~/' Police Detective Unmarked To and from work Police Officers when ~;J'--O scheduled off at t1:00 p.m. back at 6:30 a.m. Squad To and trom work Public Works Supervisor Pick-up To and from work City Engineer V#706 To and from work and personal (see below) Attached is a memo from our Police Chief which discusses past practice on use of squad cars. Our Public Works Supervisor advises he is authorized to take a City pick-up as he is on 24 hour call, In addition he advises that back in 1976, when Ramsey purchased its first pick- up, there was no safe place to store it. He stores it in his garage for evenings and week-ends. During employment negotiations with our City Engineer, the former Council offered him the use of a City vehicle for personal and business travel. Our former City Administrator stated, in the letter of employment offer, that it included use of a City owned vehicle. Mr. Jankowski, in his acceptance letter, stated the following: "...we agreed that I would have use of a City vehicle for travel to and from work, exclusive of long distance travel." Observations: Authorized use of a City vehicle for travel to and from work effectively limits vehicle availability for other Staff members. This limitation could result in the need for additional City vehicles. In addition, the IRS defines the use of a City vehicle for travel to and from work as a taxable fringe benefit. Due to th, is. t,he City not only incurs the cos'. of rue!. maintenance, i~;,~'-.--~ etc. ' ' miles. . emDiover xes or +'~ ....... , .... o these b~:: Days :a ,nv frinoe benef:: Due to the specific employment agreemen: w~tr' Mr. Jan~,owski wherein persona: use was ioentified, the Finance Office has oetermmeO aP, c reported to the IRS a taxable fringe benefit to him for the year of 1991 in the amount of S1,901.00. Although there are specific exclusions to the IRS Taxable Benefit Rule, it ~s possible a taxable fringe benefit should have ueen reported for the other authorized users. The Finance Office will research the IRS regulations and apply as necessary for 1992.