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Vehicle Use by Employees of the Milwaukee Department of Neighborhood Services Kristen Grill Erik Larson Timothy Steiner
Status Quo Vehicle Use Policy • Policy split amongst two distinct practices • Department Public Works (DPW)-provision of 34 Vehicles • Assesses rental rate to DNS • Fuel provided via city-operated gas stations • Employee provision of 82 Vehicles • Employees required to provide vehicle • Mileage reimbursed per city ordinance • Guaranteed monthly payment equivalent to 300 miles
Alternative Vehicle Use Policies • City Provision of Vehicles: • DPW provides all vehicles (82 new vehicle purchases) • Employee Vehicle Provision: • Employees required to supply personal vehicle • Vehicle Leasing: • Lease vehicles from a private vendor • Lease Arrangement: 3-year, Closed-end, 15,000 mile/yr • Access to city-operated gas stations
Cost: Status Quo • The Status Quo costs between $255,390 and $294,693 or 38 to 44 cents per mile
Cost:City Provision • City Provision costs range from $401,992 to $595,011, or 60 to 89 cents per mile
Cost: Employee Provision Alternatives • Employee Provision would cost an estimated $237,691 per year, or 36 cents per mile
Cost: Vehicle Lease Alternative • Leasing would cost an estimated $533,900 or 80 cents per mile
Employee Productivity Percentage of Survey Respondents Who Said That Their Vehicle Broke Down While in the Field During the Past Twelve Months
Employee Safety Those who Drive City Vehicles are Less Likely to Agree with the Statement “The Vehicle that You Use at DNS is Safe”
Equity • Status Quo rates “low” • Survey indicates dissatisfaction over current split vehicle use policy • City Provision and Vehicle Leasing rate “high” • Uniform vehicle policy • Employees do not bear burden of providing a personal vehicle • Employee Provision rates “low” • Survey indicates dissatisfaction with reimbursement levels • Precludes individuals without personal vehicle from employment • Employees responsible for providing replacement vehicle
Feasibility • City Provision rates “low” • Purchase of 82 new vehicles unlikely given current city practice • Employee Provision rates “high” • DNS employees eligible for mileage reimbursement • Caveats • Leasing Vehicles rates “low” • Requires leasing 116 vehicles • High administrative costs
At an estimated annual cost of $237,691, or 36 cents per mile, it represents the most cost effective alternative Ranks high in terms of feasibility DNS could use magnetic placards to clearly mark employee vehicles as city vehicles Caveat: Based on survey data, DNS employees may dislike this alternative Final Recommendation: Employee Vehicle Provision