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Notice of Meeting

NOTICE IS HEREBY GIVEN in accordance with Section 87 of the Local Government Act 1999, that a meeting of the

CEO Recruitment, Performance Appraisal and Remuneration Review Committee

of the

CITY OF BURNSIDE

Will be held in the Boardroom, Civic Centre at 401 Greenhill Road, Tusmore

on

Tuesday 10 December 2019 at 6.30pm

Barry Cant Acting Chief Executive Officer

CEO Recruitment, Performance Appraisal and Remuneration Review Committee

Agenda

Tuesday 10 December 2019

Boardroom, Civic Centre, 401 Greenhill Road, Tusmore

Members: Mayor Anne Monceaux Councillors Lemon, Cornish, Jones, Piggott and Daws 1. Apologies 2. Leave of Absence 3. Confirmation of Minutes

Recommendation:

That the minutes of the CEO Recruitment, Performance Appraisal and Remuneration Review Committee meeting held on 26 November 2019 be taken as read and confirmed.

4. Reports/Items of Business 4.1 Approval of Revised CEO Vehicle 5. Urgent Business 6. Confidential Items 7. Next Meeting The next meeting of the CEO Recruitment, Performance Appraisal and

Remuneration Review Committee will be held on a date to be advised. 8. Closure

CEO Recruitment, Performance Appraisal and Remuneration Review Committee Agenda 10 December 2019

Item No: 4.1 To: CEO Recruitment, Performance Appraisal and Remuneration

Review Committee Date: 10 December 2019 Author: Karishma Reynolds, Group Manager Finance and Governance Contact: Karishma Reynolds, Group Manager Finance and Governance Subject: APPROVAL OF REVISED CEO VEHICLE Attachments: A. Schedule 1

B. Light Fleet Management Policy C. Fleet Management Protocol D. Amended salary sacrifice calculations on motor vehicle

Prev. Resolution: C12335, 26/10/19 C12341, 30/10/19 CP0447, 26/11/19

Officer’s Recommendation

1. That the Report be received.

2. That the CEO Recruitment, Performance Appraisal and Remuneration Review Committee approves the purchase of the Mitsubishi Outlander Exceed 2.4L Phev AWD for the Chief Executive Officer.

3. That the CEO Recruitment, Performance Appraisal and Remuneration Review Committee approves the amended Schedule 1 provided in Attachment A inclusive of the salary sacrifice amount for the vehicle selected by the Chief Executive Officer.

Purpose

1. To provide the CEO Recruitment, Performance Appraisal and Remuneration Review Committee (CEO Committee) with information on and seek approval of the revised CEO motor vehicle.

Strategic Plan

2. The following Strategic Plan provisions are relevant:

Delivery of good governance in all Council business

A financially sound Council that is accountable, responsible and sustainable

Communications/Consultation

3. The following communication / consultation has been undertaken:

3.1. Discussions with key internal stakeholders;

3.2. Discussions with the CEO Committee on 26 November 2019; and

3.3. Receipt of quotes from four vehicle dealerships.


Statutory

4. The following legislation is relevant in this instance:

Local Government Act 1999

Policy

5. The following Council Policies are relevant in this instance:

Procurement Policy

Light Fleet Management Policy

Risk Assessment

6. There are no risks associated with the recommendation.

CEO Performance Indicators

7. At the time of writing this report the CEO’s Performance Indicators for the 2019/20 financial year have not been set.

Finance

8. The 2019/20 Budget does not include an allocation of funds towards the purchase of the CEO’s vehicle. Council Administration will review the current fleet allocation and whether this additional cost of $45k (exc GST) could be funded through identified savings. If not, Council Administration will propose an adjustment as part of the Mid-Year budget review process currently scheduled to be tabled at Council in February 2020.

Discussion

Motor Vehicle

9. At its meeting on 26 November 2019, the CEO Committee considered the CEO vehicle and related salary sacrifice amount and resolved (in part):

‘That the CEO Recruitment, Performance Appraisal and Remuneration Review Committee approves the purchase of the Mitsubishi Outlander Exceed 2.0L Phev AWD for the Chief Executive Officer.

That the CEO Recruitment, Performance Appraisal and Remuneration Review Committee approves the amended Schedule 1 provided in Attachment A inclusive of the salary sacrifice amount for the vehicle selected by the Chief Executive Officer.’

10. Since the resolution on the 26 November 2019, Council Administration was contacted by the successful dealership advising that the 2019 model car quoted on was not available and a subsequent quote on the 2020 2.4L model was provided.

11. Council Administration assessed quotes from all four dealerships and re-performed the calculations for the CEO’s salary sacrifice amount.


12. The amended calculations are in line with the Light Fleet Management Policy as well as the Fleet Management Protocol and are as follows:

12.1. Prior calculations based on 2019 2.0L model - $11,281

12.2. Revised calculations based on 2020 2.4L model - $11,370

13. Attachment D contains the revised calculation information included to arrive at the salary sacrifice amount.

Conclusion

14. It is recommended that the CEO Committee approves the purchase of the Mitsubishi Outlander Exceed 2.4L Phev AWD for the Chief Executive Officer and approves the amended Schedule 1 provided in Attachment A inclusive of the salary sacrifice amount for the vehicle selected by the Chief Executive Officer.

SCHEDULE 1

TOTAL EMPLOYMENT COST PACKAGE

Chris Cowley - Chief Executive Officer Schedule effective from 13 January 2020

(1) Annualised Cash Salary $239,771.55 (2) Notional Value of Motor Vehicle $11,370.00 ZL Outlander 2.4 AWD – Two Year Retention (3) Compulsory Superannuation Guarantee Levy $23,858.45 Currently 9.5% of total package (4) Salary Sacrifice Superannuation $0.00 TOTAL EMPLOYMENT COST PACKAGE $275,000.00 If utilised (2) and (4) above will reduce the Annualised Cash Salary shown in (1). Items provided to the CEO in order to conduct business at no cost to the CEO: Mobile Phone

Laptop / Tablet

Signed:………………………………………………….. Date:…………………………. Chris Cowley

Classification: Council Policy

Policy Name: Light Fleet Management Policy

First Issued / Approved: July 2003 13 September 2016, C10810

Last Reviewed: 29 January 2019, C11919

Next Review: January 2023

ECM Tracking No.: 988251

Responsible Officer: Group Manager Finance and Governance

Relevant Legislation: Local Government Act, 1999 Local Government (Financial Management) Regulations 2011

Related Policies/ Protocols:

Procurement Policy Sale or Disposal of Assets PolicyFleet Management ProtocolManagement of Alcohol and Other Drugs ProtocolPerformance Management and Misconduct Protocol Operational Guideline – Fleet GPS

1. Introduction

1.1 This Light Fleet Management Policy provides a framework that guides the procurement, management and maintenance for vehicles used in Council business.

2. Strategic Plan Desired Outcomes

2.1 Delivery of good governance in Council business.

2.2 A financially sound Council that is accountable, responsible and sustainable.

3. Our Approach

3.1 Regularly review, update and adopt leading governance, risk management and administrative processes.

3.2 Ensure the long term sustainability of Council operations by monitoring and

comparing to peak body indicators.

Version: 9, Version Date: 05/03/2019Document Set ID: 988251

City of Burnside Policy Manual Page 2

4. Legislative Requirements and Corporate Policy Context

4.1 This Policy has been developed and adopted in accordance with Section 49 of the Local Government Act 1999.

5. Interpretation

5.1 For the purpose of this policy:

5.1.1 “ANCAP” Australian New Car Assessment Program provides a one to five star rating for the level of occupant protection provided by vehicles in serious front and side crashes.

5.1.2 “Fleet Vehicle” a vehicle owned and operated by the City of Burnside and used for the operation of its business.

5.1.3 “Green Vehicle Guide” The Commonwealth Department of Infrastructure, Transport, Regional Development and Local Government maintains an interactive website called the Green Vehicle Guide (GVG) which is available at www.greenvehicleguide.gov.au.

5.1.4 “Light Vehicle” a vehicle owned or operated by the City of Burnside under

two tonnes total mass (unburdened by loads or another towed vehicle).

6. Fleet and Vehicle Management Policy

6.1 Light Vehicle - Minimum Standards Council will select and use light vehicles with the following minimum standards promoting environmentally friendly and safe vehicle use. 6.1.1 In purchasing light fleet vehicles, a balanced assessment using weighted

criteria should be used including; (a) Annual Whole of Life Costs (including taxation and fuel consumption) (b) ANCAP Safety Rating (c) CO2 emissions and air pollution

6.2 Safety Ratings 6.2.1 Any new light vehicle purchased by Council shall have a minimum five (5)

star vehicle safety rating, as prescribed by the Australian New Car Assessment Program (ANCAP).

6.3 Green Vehicles 6.3.1 Council will operate and use vehicles that as much as practicable reduce its

carbon footprint.


http://www.greenvehicleguide.gov.au/


6.3.2 The Commonwealth government portfolio responsible for local government at a federal level maintains an electronic register via the web, which provides details on vehicle greenhouse ratings, carbon dioxide emissions, air pollution for each new vehicle released on the Australian light vehicle market.

6.3.3 The procurement governance principles underpin all Council purchases. In

section 6.1.7 of the Procurement policy. It details our philosophy for Social and Economic and Environmental Sustainability.

6.4 General Conditions of Use

6.4.1 All vehicle users will comply with a strict no smoking policy for all occupants

of vehicles at all times.

6.4.2 Drivers of vehicles will hold a full Australian drivers licence for the vehicle being operated.

6.4.3 Vehicles are not permitted to be used for commercial purposes by

operators, unless expressly permitted by Council.

6.4.4 Vehicles are to be maintained to an acceptable level by the operator or administration if a pool vehicle.

6.4.5 All vehicles must carry a First Aid kit.

6.5 Modifications and Warranties

6.5.1 No vehicle shall be modified without the express permission of the relevant

General Manager.

6.5.2 Before any vehicle modifications are approved, the relevant General Manager must be fully informed of any impact to Council’s claim to the vehicle warranty.

6.6 Vehicle Changeover Benchmarks

6.6.1 In balancing whole-of-life vehicle costs with their effective use, Council will

change over vehicles on a regular basis.

6.6.2 Vehicles will be changed over based on their usage (number of years or kilometres).

6.6.3 Tool of Trade and other pool vehicles will be selected based on the

following;

(a) organisational demand or need;

(b) the lowest life cycle cost, and;

(c) the lowest environmental impact.



6.6.4 Vehicles may, however, be replaced in accordance with fleet requirements, market conditions or usage with the approval of the relevant General Manager.

6.7 Strategic Incentive for Staff Attraction or Retention

6.7.1 Fleet management principles may also include the strategic imperative to

attract and retain high quality employees.

6.7.2 As such the private use of a Council vehicle may align with human resource and cultural principles in order to fulfil efficient fleet management and effective employee attraction and retention.

6.7.3 This may be achieved through agreed leaseback arrangements between

Council and selected employees.

6.7.4 A leaseback arrangement is one where an element of private use by an employee is implicit in the purchase for that particular vehicle, expressly reinforced in Council’s remuneration contract conditions with the employee.

6.8 Acquisition Platforms

6.8.1 Council has various options available to it in the market place in order to

acquire vehicles. Those options are outlined at a high level below; (a) Own and use outright;

(b) Own for shared use;

(c) Lease finance;

6.8.1.1 Own and use outright

6.8.1.1.1 This style of vehicle acquisition and use is where

Council purchase a vehicle outright and retain all rights and privileges of the vehicle after the price of the acquisition has been settled with the vendor.

6.8.1.1.2 It is the most common way in which a vehicle is acquired and managed by Council for use at its discretion.

6.8.1.2 Shared use

6.8.1.2.1 Generally the principles of shared vehicle use pertain

to larger Councils with a dense vehicle usage footprint, such as Councils responsible for central business districts (CBD’s) for residents, rather than exclusive use for Council operations.

6.8.1.2.2 Shared use vehicle arrangements derive from the profligacy of vehicles in densely populated areas, in a bid to reduce energy use and emissions of vehicles in those areas.



6.8.1.2.3 It is not intended for any vehicles currently owned by Council to operate under the conditions associated with shared use vehicles.

6.8.1.2.4 If a shared use scheme is proposed as part of the fleet

and vehicle management system by the Administration, it must be approved by the General Manager, Corporate & Development before being implemented by the Administration.

6.8.1.3 Lease Finance

6.8.1.3.1 Leased vehicles provided by third party operators for

Council use is another form of fleet and vehicle management available to Council.

6.8.1.3.2 The operators provide prescribed use rights to Council in exchange for a periodic payment over a fixed period, for the use of the vehicle in that time.

6.8.1.3.3 At the expiration of the agreed fixed period the vehicle

is returned to the third party operator, thereby reducing the administrative burden of liquidating the vehicle under outright ownership arrangements, once change over benchmarks are triggered.

6.8.1.3.4 Nevertheless, the Administration will not enter into

negotiations to acquire a vehicle under lease arrangements unless expressly approved by the General Manager Corporate & Development.

7. Availability

7.1 The Policy is available to be downloaded, free of charge, from Council’s website www.burnside.sa.gov.au

7.2 The Policy will be available for inspection without charge at the Civic Centre during

ordinary business hours and a copy may be purchased at a fee as set annually by Council. City of Burnside Civic Centre 401 Greenhill Road, Tusmore SA 5065 Telephone; 8366 4200 Fax; 8366 4299 Email; [email protected] Office hours: Monday to Friday, 8.30am to 5.00pm (except public holidays)


http://www.burnside.sa.gov.au/

Management Protocols & Procedures Manual Page 1

Fleet Management

Classification: Management Protocols & Procedures

Protocol Name: Fleet Management First Issued / Approved: July 2000

Last Reviewed: August 2015 (Executive Management Team) Next Review: January 2023

ECM Tracking No.: 975772 Responsible Officer: General Manager Corporate and Development

Relevant Legislation: Road Traffic Act 1961

Australian Road Rules Heavy Vehicle National Law, SA, Act 2013

Related Policies and Procedures:

Light Fleet Management Policy Management of Alcohol and Other Drugs Protocol Performance Management and Misconduct Protocol Chain of Responsibility Protocol Operational Guideline – Fleet GPS

1. Introduction

1.1 This protocol describes how Administration will use and administer the City of

Burnside’s motor vehicles fleet.

1.2 The provision of a motor vehicle, as part of an employee’s salary package, plays a significant part in employee recruitment and retention.

1.3 This Protocol applies to all vehicles used by staff and volunteers in the performance of their duties and specifically includes buses used to transport passengers, heavy vehicles and trailers used in maintenance operations and equipment registered for use on the road.

1.4 The City of Burnside maintains a motor vehicle fleet to assist with the delivery of services to our community. The choice of fleet vehicles is made to achieve this objective and meet the principles of:

1.4.1 WHS Obligations; 1.4.2 Vehicles Being Fit for Purpose; 1.4.3 Cost Effectiveness, and 1.4.4 Environmental Impact.

2. Definitions 2.1 Council Business Hours

For the Civic Centre, business hours are between 8.30am to 5.00pm, and for the Council Depot, business hours are between 7:00am and 4:00pm, each of these sites having a spread of days between Monday and Friday inclusive.

2.2 Equipment Items registered for use on the road not including light passenger fleet vehicles includes but is not limited to trailers and plant registered for travel on roads.

2.3 Fleet Manager The Manager responsible for the light fleet vehicles is the Group Manager Finance & Governance.

2.4 Fleet Coordinator The Fleet Coordinator is the Procurement Personnel.

2.5 Principal Driver An employee, who has the exclusive right to drive a vehicle between work and home or, in the case of Tool of Trade vehicles, is the assigned regular user of a vehicle.

2.6 Passenger Fleet All vehicles used by staff in the performance of their duties and specifically includes buses used to transport passengers, heavy vehicles and trailers used in maintenance operations and equipment registered for use on the road.

2.7 Pool Vehicles Vehicles within the light passenger fleet which are available for booking by any staff member for Council use during normal working hours.

2.8 Exclusive Private Use Vehicles These vehicles are not available for pool use and are partly funded from an employee’s remuneration package through salary sacrifice (Clause 5.1.1).

2.9 Restricted Private Use Vehicles Vehicles are typically part of a Department Manager’s remuneration package as salary sacrifice and are available for use by other staff during the day (Clause 5.1.2).

2.10 Tool of Trade Vehicles These vehicles perform a specific function and the type of vehicle is selected based on the job specification criteria. (Clause 5.1.3)

2.11 Pool Use Vehicles Those vehicles within the light passenger fleet which are available for booking by any staff member for Council business use during normal working hours. (Clause 5.1.4)

2.12 Community Use Vehicles

These vehicles specifically include buses for passenger transportation, heavy vehicles and trailers used in maintenance operations and equipment registered for use on the road. (Clause 5.1.5)

2.13 Heavy Vehicle Any vehicle over 4.5 tonne gross vehicle mass (gvm).

2.14 Gross Vehicle Mass The gross vehicle weight rating (GVWR), or gross vehicle mass (GVM) is the maximum operating weight/mass of a vehicle as specified by the manufacturer including the vehicle's chassis, body, engine, engine fluids, fuel, accessories, driver, passengers and cargo but excluding that of any trailers.

3. Triggers for Review

3.1 Periodic cost increases due to market fluctuations, changes in insurance

requirements, change in processes or contracts of employment, Council decisions or any other relevant legislative changes which may impact on this protocol.

4. Our Approach

4.1 There should be sufficient vehicles available for Council to provide an efficient,

effective and responsive service to the City of Burnside Community.

4.2 To offer flexibility in conditions of employment within the workplace whilst still ensuring organisational needs are being met.

5. Policy

5.1 The use of Council vehicles may fall into one of the following categories:

5.1.1 Exclusive Private Use (Type A Vehicles)

This category relates to employees who negotiate employment agreements for the provision of a vehicle that is not available for use by other staff, unless agreed by the employee, during normal business hours and thus the employee is the sole user of the vehicle. The vehicle is available for the employee’s private use albeit can be available for use by other staff members at the discretion of the employee. This category will generally apply to the Executive Team. The purchase of these vehicles is required to be approved by the CEO Remuneration Committee (in case of the Chief Executive Officer) and by the Chief Executive Officer (in case of the General Managers).

5.1.2 Restricted Private Use (Type B Vehicles) This category relates to employees who negotiate employment agreements for the provision of a vehicle that is available for use by other staff during normal business hours and thus the employee is not the sole user of the vehicle. The vehicle is available for the employee’s private use. This category will generally apply to Departmental Managers. The purchase of these vehicles is required to be approved by the relevant General Manager.

5.1.3 Tool of Trade Vehicles (Type C Vehicles) This category relates to vehicles which are configured for a specific function, and which may also be associated with positions which require after hours call outs. These vehicles are also called Operational use vehicles. These vehicles will be available for pool use, except for Ranger vehicles.

5.1.4 Pool Use Vehicles (Type D Vehicles) These vehicles are available for general use, including attending worksites, or for business meetings. These vehicles remain on Council premises overnight.

5.1.5 Community Use Vehicles (Type E Vehicles)

This category relates to vehicles specifically driven by both volunteers and staff transport passengers and includes buses, heavy vehicles, Ute and trailers used in maintenance operations and equipment registered for use on the road. These vehicles remain on Council premises overnight.

5.2 Conditions for Exclusive and Restricted Private Use of a Council vehicle

5.2.1 A Principal Driver’s partner, who is not on a Learner or Probation licence, may drive a Council vehicle under private travel arrangements without the need for the employee to be present if the person has been nominated on the Attachment B Exclusive and Restricted Private Use Motor Vehicle Agreement Form.

5.2.2 The Principal Driver’s immediate family members who live with the employee, excluding the Principal Driver’s partner, and are not on a Learner or Probation licence but who hold a valid full drivers licence can drive the Principal Driver’s Council vehicle but must always be accompanied by the Principal Driver or the Principal Driver’s partner.

5.2.3 Any interstate travel in an Exclusive or Restricted Private Use needs to be duly approved in written form via email (by the Line Manager) prior to the travel date. The request for approval needs to include the travel dates and travel destinations.

5.2.4 Employees and the nominated drivers accept responsibility for all obligations under this protocol.

5.3 Employee salary sacrifice contributions for Exclusive and Restricted Private Use

5.3.1 The vehicle range for Types A and B vehicles will recognise that the vehicle is partly funded from an employee’s remuneration package, reflecting Council’s desire to manage the cost of the fleet, suitability for Council use and the seniority of the employee’s position.

5.3.2 Changes to the vehicle values and consequent contributory

payments from employee salary will only apply when a vehicle is changed over.

5.3.3 The vehicles cost to Council is calculated on an individual basis

and includes:

5.3.3.1 The cost of the Vehicle excluding GST;

5.3.3.2 The GST calculations should take into consideration the current car limits as prescribed by the Australian Taxation Office;

5.3.3.3 Residual cost of vehicle based on average trade in values from Redbook to determine the resale values at 2 or 3 years points;

5.3.3.4 Fuel (assuming annual travel of 15,000km/annum);

5.3.3.5 Annual insurance cost;

5.3.3.6 Cost of servicing and change of tyres;

5.3.3.7 Vehicle depreciation; and

5.3.3.8 Financing costs based on the purchase cost and

current variable interest rates for the Local Government Finance Authority

5.3.3.9 Fringe Benefits Tax based on current Statutory % and

Gross up factors.

5.3.4 The Cost to Council for Type A Exclusive Private Use vehicle (5.1.1) must be less than $20,000 per annum (to be indexed from 1 July for each financial year based on the preceding March Adelaide All Groups CPI).

5.3.5 The Cost to Council for Type B Restricted Private Use vehicle (5.1.2) must be less than $15,000 per annum (to be indexed from 1 July for each financial year based on the preceding March Adelaide All Groups CPI).

5.3.6 Vehicles can be retained for a 2 or 3 year period

5.3.7 Employee salary sacrifice contributions are based on the total

cost to Council multiplied by 60%.

5.3.8 Council may periodically vary the terms and conditions of vehicle use.

5.3.9 Council will give staff one (1) months written notice of any

Protocol changes.

5.3.10 It is acknowledged that existing employment contract agreements will take precedence over this Protocol until negotiated differently.

5.4 Employee Leave

5.4.1 Principal Drivers of Restricted Private use Council vehicles must ensure that their vehicle is booked out whenever it is not available for pool use.

5.4.2 Employees with Tool of Trade use of a Council vehicle must return

the vehicle to the Council during any period of leave and for extended periods of sick/carers leave/TOIL/rostered days off. The temporary Tool of Trade use by an employee backfilling or covering the duties of the position may be approved by the relevant General Manager.

5.4.3 Tool of Trade vehicles shall be returned to the fleet when Principal

Drivers are receiving income protection or WorkCover benefits unless agreed otherwise by the relevant General Manager.

5.5 Restrictions on Use

5.5.1 Council staff must hold and maintain a current valid Australian Drivers License in order to book out and drive Council vehicles.

5.5.2 Council staff must sign off that they have read and understand the

requirements of this protocol.

5.5.3 Council vehicles must not be driven or entered in any race, rally, competition or other event, or when blood alcohol levels approach the legal limit, or when impaired by medication or other drugs.

5.5.4 Learner or Probation licence drivers shall not drive Council vehicles under any circumstances.

5.5.5 No classification of Council vehicles can be used for any commercial private business purposes outside of Council business except as allowed for in any other part of this document. Such misuse will be dealt with in accordance with section 5.8 Misuse of Vehicles.

5.5.6 Tool of Trade vehicles must only be used by the employee for the

purpose of Council business and commuting, by the nearest direct route between the employee’s place of residence and the place of employment with Council.

5.5.7 Out of business hours private use of Tool of Trade and Pool vehicles by employees is not permitted.

5.5.8 During working hours, vehicles (excluding Type A and Tools of Trade vehicles) shall be made available to other staff required to attend to business on Council’s behalf and may be booked for that purpose.

5.5.9 The Principal Driver will safely park the vehicle off road overnight to minimise risk of damage or theft. For a new or renewed Motor Vehicle Agreement, Principal Drivers of Type A and B vehicles may be required to take an existing vehicle that has been made redundant within the fleet until a new vehicle is available. The assessment is to be done on a case by case basis which will help determine if an existing vehicle should be re-allocated or whether it should be sold and another one purchased.

5.6 Vehicle Appearance and General Maintenance

5.6.1 Principal Drivers must maintain their vehicle at an acceptable standard both in appearance and function. This includes:

5.6.1.1 Keeping the car clean and presentable for use. The

Cleaning of Tools of Trade, Pool and Community Vehicles will be done through Council. However, cleaning of Vehicle Types A and B will be the responsibility of the employee who salary sacrifices for it. A maximum amount of $20 per month is available as a reimbursement if the car is cleaned through a carwash. A tax invoice is required and the $20 amount cannot be carried forward to the next month.

5.6.1.2 Garage the vehicles (if possible), park off-road overnight and lock and secure the vehicle at all times;

5.6.1.3 Not driving the vehicle immediately if it becomes unroadworthy and advise the Fleet Coordinator;

5.6.1.4 Ensure that all servicing is done in accordance with the manufacturer’s recommendations, through a service provider or a suitable mechanic.

5.6.1.5 Arrange inspection of the vehicle with the Fleet Coordinator immediately prior to the expiry of the warranty period or changeover;

5.6.1.6 Principal Drivers of vehicles must ensure that the petrol tank is at least one quarter (1/4) full when arriving at Council to reduce the risk of the tank being emptied during use;

5.6.1.7 Council staff who book vehicles are to check the petrol tank prior to delivering a vehicle back to Council, and if the petrol tank is less that one quarter (1/4) full, they must fill the tank using the fuel card in the vehicle prior to bringing the vehicle back to Council;

5.6.1.8 Employees and volunteers who do not demonstrate appropriate care and security of a vehicle may risk losing the use of a Council vehicle;

5.6.1.9 Council will be responsible for the following costs of Council vehicles:

5.6.1.9.1 Comprehensive insurance; 5.6.1.9.2 Compulsory third party insurance; 5.6.1.9.3 Car Cleaning (for C,D and E vehicle

types); 5.6.1.9.4 Vehicle registration; 5.6.1.9.5 Fuel; and 5.6.1.9.6 Any repairs and maintenance of the

vehicle not related to misuse.

5.6.1.10 The employee to whom the vehicle is allocated must notify the Fleet Manager, Fleet Coordinator and WHS and Risk Management Coordinator of any vehicle defects or damage to vehicles as soon as they become aware of the damage or defect.

5.7 Responsibility for Traffic Infringements 5.7.1 Any driver of a Council vehicle must comply with the Australian

Road Rules when using a Council vehicle. Drivers should note that these Rules include restrictions on the use of a mobile telephone in a vehicle.

5.7.2 Subject to 5.7.3, the employee or volunteer to whom the vehicle is allocated shall be responsible for traffic and parking infringement notices and for any road toll charges.

5.7.3 Where the car is used by other employees as part of the Council pool, responsibility for payment of traffic infringement fines will rest with the employee using the car at the time of the infringement. To facilitate this identification process, the use of the electronic car booking system will be used to identify the driver.

5.7.4 The Principal Driver must notify their Manager or Team Leader, and Fleet Manager in the event of any breach of the Road Traffic Act or its regulations, or the Australian Road Rules, as soon as becoming aware of the breach. This includes the suspension or cancellation of one’s driver’s licence for any reason.

5.8 Misuse of Vehicles 5.8.1 Where damage to a Council vehicle is caused by misuse or

neglect, the total cost of the insurance excess for loss or repairs will be met by the employee or volunteer responsible for the damage via the sundry debtor process.

5.8.2 Any breach of this policy or misuse of a vehicle including driving while unlicensed may result in disciplinary action up to and including termination of employment.

5.8.3 Each case will be determined by the relevant Group Manager and/or General Manager in the light of the prevailing circumstances and the Chief Executive Officer will be the final arbiter in any dispute.

5.9 Council Insurance Coverage Exclusions 5.9.1 Staff shall not be covered by Council’s Insurance policy in

the event of an accident, loss or damage if:

5.9.1.1 They are misusing the vehicle;

5.9.1.2 The driver’s blood alcohol or drug reading exceeds the legal limit;

5.9.1.3 The driver refuses to provide or allow the taking of

a sample breath, blood or urine test or analysis as required by law;

5.9.1.4 The driver’s faculties are impaired by a drug or

alcohol or if the driver is convicted of driving, at the time of the accident, under the influence of drugs or alcohol; and

5.9.1.5 The driver does not hold a valid licence under any

relevant law to drive such a vehicle.

5.10 Council Vehicle Accidents 5.10.1 The employee must immediately report any incidents

and/or accidents to their line manager e.g. Team Leader,

Supervisor, Department Manager, the Fleet Manager, and the WHS and Risk Management Coordinator.

5.10.2 In the event of an incident or accident, the employee or

volunteer must fill in a claim/report as per Council’s Accident/Incident Reporting and Investigation Procedure.

5.10.3 The employee or volunteer must report all notifiable motor

vehicle accidents to the police immediately and a report number must be obtained.

5.10.4 If possible, the employee or volunteer should render any

reasonable assistance if involved in a motor vehicle accident.

5.10.5 If an employee or volunteer is involved in a motor vehicle accident, no admission of liability should be made even if employee fault is suspected. Council vehicles will be equipped with a flowchart of the process to follow in the event of an accident.

5.11 Fleet Availability 5.11.1 With the exception of Exclusive Private Use vehicles, fleet

vehicles should be available for Council use during Council Business Hours, these being: 8.30am to 5.00pm Monday to Friday, Civic Centre staff 7.00am to 4.00pm Monday to Friday, Depot staff

5.11.2 Pool vehicles at the Civic Centre must be booked using the electronic booking method via Outlook and a key must be stored at a central point in the Civic Centre for staff use. The electronic booking system reflects the priority order of booking vehicles. The Depot shall also have a booking system for vehicles available at this location.

5.11.3 Pool vehicles must be parked in the car park space allocated to the vehicle. If the parking space is not available immediately, the employee with the most recent car booking is responsible for ensuring it is parked in that space and available to other Council staff at the earliest possible opportunity or advising the Principal Driver and Customer Service (via front counter or email) where the vehicle is parked.

6. Vehicles

6.1 Standard Vehicle Accessories 6.1.1 Accessories will be considered standard if they are

approved and fitted prior to delivery or are fitted subsequently following Fleet Manager Approval. Standard accessories will include:

6.1.1.1 Floor Mats; 6.1.1.2 Cargo Barrier; 6.1.1.3 Tow bar; 6.1.1.4 Window tinting; 6.1.1.5 Council may include in a vehicle other safety accessories

such as GPS and communication equipment e.g.

Bluetooth, two way radio. A sticker will be placed on the windscreen of all vehicles fitted with a GPS unit to make the driver and others aware that it has a GPS unit operating.; and

6.1.1.6 Standard accessories may not be exchanged for other accessories.

6.2 Non-standard accessories

6.2.1 Non-standard accessories, such as roof racks, may be approved by

the relevant CEO/General Manager at the time of purchase. The cost of the vehicle will include the additional cost of any non-standard accessories and any approved additional costs for fitting and removal/transfer which will impact on the amount to be salary sacrificed. The accessories are required to meet the following requirements:

6.2.1.1 Complies with Department of Transport, Energy and Infrastructure requirements;

6.2.1.2 Does not compromise vehicle safety or roadworthiness; 6.2.1.3 Complies with Council insurance policy provisions; 6.2.1.4 Driving characteristics of the vehicle are not changed; 6.2.1.5 Vehicle specifications are not (negatively) modified; and 6.2.1.6 The overall appearance of the vehicle is not

compromised.

6.2.2 At the time when a vehicle is reallocated, arrangements will be made with the employees concerned to return the accessory to the employee, if required.

6.3 Council Signage

6.3.1 Vehicles other than Exclusive and Restricted Private Use

vehicles will display Council signage.

6.4 Motor Vehicle Range and Value

6.4.1 Per the Procurement Policy vehicles will be purchased taking into consideration operational needs, fitness for purpose and whole of life costs.

6.5 Vehicle Replacement 6.5.1 Vehicles are generally replaced at the optimum economic time.

Type A & B vehicles have an optional two years or three years replacement. Type C & D vehicles are retained for three years or 60,000 kilometers, whichever occurs first. Vehicles may, however, be replaced in accordance with fleet requirements, market conditions or usage with the approval of the relevant General Manager.

6.5.2 For Exclusive and Restricted Private Use vehicles, paint colour and

trim may be chosen by the employee provided the effect on Council image and the resale value as determined by the Fleet Manager is minimal.

6.5.3 Tool of Trade and other pool vehicles will be selected based on

the following:

6.5.3.1 The organisational need,

6.5.3.2 The lowest life cycle cost, and

6.5.3.3 The lowest environmental impact.

6.5.4 Colour selection for Tool of Trade and other pool vehicles will be as advised by the Fleet Manager, after approval from the Executive, who will consider aspects of the purchase including resale value.

7. Staff and Volunteer Use of Vehicles

7.1 Employees and volunteers with access to Council vehicles must adhere to

the following: 7.1.1 Smoking is prohibited in all Council vehicles at all times; 7.1.2 All Council vehicles, (other than the Type A: Exclusive Private Use

vehicles and Tools of Trade vehicles) when not in use are to be available for use by Council Employees and volunteers;

7.1.3 During office hours, pool vehicles must be booked through an electronic car booking system;

7.1.4 Vehicles are not to be reserved in the electronic booking system in the event that they might be required;

7.1.5 Council staff should consider not making recurrent bookings which would restrict the availability of the vehicle to other staff;

7.1.6 Reasonable care must be taken to ensure that the vehicle is

returned on time and in the same condition as it was before use. This includes at least a quarter tank of fuel at all times;

7.1.7 If a staff member who has booked a vehicle and is away from

Council premises, becomes aware that they will be using the vehicle past the booked time, they are responsible for ensuring that any other staff that has made subsequent bookings for that vehicle is made aware so those staff can make alternate arrangements. It is appropriate that staff request assistance from their team members in doing this, rather than first asking a staff member from another team;

7.1.8 Consideration should be given when booking a car out for long

periods or for Adelaide City trips to use alternative transport options such as carpooling or cab charges; and

7.1.9 Electronic car bookings must include mandatory information which

includes the drivers name, their telephone extension, the location(s) or destination of Council business and a reason for the booking.

7.2 Availability of Fleet Vehicles for Private Use In Case of Emergency 7.2.1 During work hours, vehicles are not available for private use by

any employee, including meal breaks, except in an emergency situation, except employees with type A and B vehicles, notwithstanding the provisions of clause 7.2.2.

7.2.2 Where the Principal Driver of a vehicle resides in an area which has been declared by the Country Fire Service as the subject area of a Catastrophic Fire Danger Warning, the driver of that vehicle may book out the vehicle on the vehicle booking system and notify any staff who had prior bookings, that the vehicle will not be available. This ensures that if these staff are required to leave Council at short notice, that car will be available for that use.

7.3 Fuel Card Usage 7.3.1 Council will issue a fuel card for Council’s designated fuel

supplier for the purchase of fuel, engine and transmission oils only for the Council vehicle. The fuel card does not allow for the purchase of premium fuels.

7.3.2 Fuel cards must not be used for any other purpose including the purchase of fuel or oil for any other vehicle or for filling loose drums or containers, except those for fueling Council plant such as lawn mowers and hand held power tools (e.g. Chain saws, hedge trimmers). Under no circumstances is the fuel card to be used to purchase goods and services unrelated to the vehicle for which it is allocated.

7.3.3 Breach of the conditions of use of the fuel card could be

considered theft and may lead to instant dismissal.

7.3.4 The odometer reading for a vehicle must be given to the service station attendant and the security PIN number keyed in each time the card is used to buy fuel for the Council vehicle.

7.3.5 Lost or damaged cards must be reported to the Fleet

Coordinator as soon as possible to organise a replacement. The lost card will be cancelled immediately when reported.

7.3.6 For vehicles in the vehicle pool, the card should be left in the

centre console of the vehicle in a secure position and hence, not visible from outside the vehicle.

7.4 Roadside Assistance

7.4.1 All fleet vehicles are provided with 24 hour roadside assistance, either through a manufacturer-provided programme or the RAA. Details of road side assistance will be located in the Council vehicle glove box.

7.5 Personal Items

7.5.1 Personal items should not be left in Council vehicles, including in the boot or wagon area. If personal items are left in the vehicle and are subsequently lost, stolen or damaged, claims should be made under the Principal Driver’s personal household insurance policy. Where personal items are not covered by the driver’s insurance policy, they may be claimed under cover of Council’s insurance policy. Further details can be obtained from the WHS/Risk Management Coordinator.

8. Motor Vehicle Agreement

8.1 Council has developed the Exclusive and Restricted Private Use Motor Vehicle Agreement Form (Attachment B) for these vehicles.

8.2 Employees who are allocated either of these class of vehicles must sign

the relevant agreement and abide by the conditions and procedures therein.

9. Breaches of this Protocol or Cancellation of or Changes to the Motor

Vehicle Agreement 9.1 In the event of a breach by the employee of any of the terms of this

Protocol, and without detracting from any other rights or legal remedies available to Council, the Chief Executive Officer may at their discretion withdraw the use of vehicles either permanently or for a period of time.

9.2 The Chief Executive Officer may review, change or cancel the Motor Vehicle Protocol if changes are required to meet operational or legislative needs.

9.3 If the Chief Executive Officer wishes to terminate or vary a Motor Vehicle Agreement the employee will receive one (1) month’s written notice of the termination or of the terms of any variation.

9.4 A Motor Vehicle Agreement may also be terminated by mutual consent by both parties. If an employee wishes to terminate the use of the Council vehicle prior to the agreement period, the employee may be liable for any losses incurred in the sale of the car. In this case, the salary sacrifice calculations will be re-done with the amended residual value, actual term etc to ensure that Council is not out of pocket.

9.5 After the early termination of a Motor Vehicle Agreement, the Principal Driver may not enter into a new Motor Vehicle Agreement until the original term of the terminated agreement is expired and the vehicle, including keys, should be returned to their respective Manager or Supervisor. If their Manager or Supervisor is not available then any Procurement or Finance team member will suffice.

9.6 A breach of this Protocol may result in disciplinary action, including up to

termination of employment.

ATTACHMENT A

TOOL OF TRADE USE MOTOR VEHICLE AGREEMENT FORM

1. Purpose

This form outlines the conditions for Tool of Trade use of a Council fleet vehicle and forms the agreement between the City of Burnside and the employee.

2. Conditions of Use

This agreement must be read in conjunction with the Council Fleet Policy and the Management Protocol. Read and understand your obligations before signing this agreement.

Tool of Trade Use Only means that the Council vehicle can only be used by you for the purpose of commuting each day directly between your place of residence and your place of employment with Council by the nearest direct route. No other private use is permissible.

3. Principal Driver

Please insert your name (the employee who is allocated tool of trade use of a Council vehicle) and driver’s licence number (copy of driver’s licence to be attached).

Name of Employee Driver’s Licence Number

I have read, understood and will accept and comply with the conditions contained in the City of Burnside’s Motor Vehicle Protocol (attached) and Tool of Trade Use Vehicle Agreement.

_ _ Signature Print Name

_ _ Date

Signed on behalf of, and for, the City of Burnside

Name_ Date

Position Signature _

THIS AGREEMENT IS SUBJECT TO COMPLIANCE WITH COUNCIL’S MANAGEMENT PROTOCOL WHICH IS AMENDED FROM TIME TO TIME. SHOULD COUNCIL’S MANAGEMENT PROTOCOL CHANGE SUBSTANTIALLY, ONE MONTH’S NOTICE OF ANY CHANGES WILL BE GIVEN TO THE EMPLOYEE AND A NEW AGREEMENT FORM PREPARED.

Management Protocols and Procedures Manual Page 13

ATTACHMENT B EXCLUSIVE AND RESTRICTED PRIVATE USE

MOTOR VEHICLE AGREEMENT FORM

1. Purpose

This form outlines the conditions for the exclusive and restricted private use of a Council fleet vehicle and forms the basis of an agreement between the City of Burnside and the employee.

2. Conditions of Use

2.1 Exclusive and Restricted Private Use of Council Vehicles; 2.1.1 This agreement must be read in conjunction with the Council Fleet Policy

and the Management Protocol. Please ensure you read and understand your obligations before signing this agreement.

2.1.2 Exclusive and Restricted Private use of a Council Vehicle means an

employee can drive the Council vehicle for both private and business purposes during and after normal business hours.

2.2 Listed below are the names and driver’s licence number of any (including family

members) drivers covered by this Agreement:

Name Driver’s Licence #

2.3 It is hereby acknowledged that a copy of the Motor Vehicle Protocol and procedure has also been provided to all nominated drivers to ensure compliance with its requirements. It is also hereby acknowledged that I will abide by all conditions of this agreement and the related Council Policies and procedures.

_ _ _ Signature of Principal Driver (employee) Print Name Date

_ _ Signature of additional driver (partner) Print Name Date

Management Protocols and Procedures Manual Page 14

Signature of all other immediate family drivers

Signature of additional driver Print Name Date




Signed on behalf of, and for, the City of Burnside

Name (print) _ Date_

Signature _

Position _

THIS AGREEMENT IS SUBJECT TO COMPLIANCE WITH COUNCIL’S MANAGEMENT PROTOCOL WHICH IS AMENDED FROM TIME TO TIME. SHOULD COUNCIL’S MANAGEMENT PROTOCOL CHANGE SUBSTANTIALLY, ONE MONTH’S NOTICE OF ANY CHANGES WILL BE GIVEN TO THE EMPLOYEE AND A NEW AGREEMENT FORM PREPARED.

Management Protocols & Procedures Page 18

ATTACHMENT C

New Vehicle / Changeover of Motor Vehicle Request

Form (Types A & B)

To: Group Manage Finance and Governance

I, ………………………………………………….. , request consideration of a new vehicle / changeover of my current Council vehicle.

I request the following change over motor vehicle:

Manufacturer:………………………………………………………….

Model:…………………………………………………………………..

Category:……………………………………………………………….

Other Specifications:………………………………………………….

This motor vehicle changeover has been discussed with the Procurement Department with a view that change-over takes place on……………………………………….

Or

I request that my new vehicle is available on ………………………………….. (Commencement date).

The employee will commence salary sacrifice contributory payments towards the motor vehicle from …………………………at the rate of $…………………… per annum as per the above table.

Please ensure that you and any other family member(s) who may be eligible to drive the Council vehicle reads, understands and complies with the Motor Vehicles Protocol as attached. A new Agreement Form for Full Private & Unrestricted Use (Attachment B) will also need to be completed and returned to the Chief Financial Officer with this form.

Signature of Employee:………………………………………… Date: ...…../……../……

Signature of General Manager:………………………………..


ATTACHMENT D

SALARY SACRIFICE CALCULATION FORM

Make and Model

Fuel Type

Retention Period Options available are 2 or 3 years

Total Purchase price (exc stamp duty and GST) Local Government organisations are not required to pay for Stamp Duty GST calculations should take into consideration the current car limits as prescribed by the Australian Taxation Office

Estimated Resale price based on average trade in values from Redbook to determine the resale values at two or three year points

Kms/Ltr Calculated as 100/(L/100kms)

L/100 KM Obtained from car manual/ Redbook or www.carsales.com.au

Fuel Cost Calculated as 15,000 k’s * Fuel price * Kms/Ltr

Service Cost Based on quote or prior spend on similar vehicle

Insurance Cost Based on rate from Local Government Association Asset Mutual Fund

Depreciation (Total purchase price less Resale price)/ Retention period

Financing Cost Total purchase price * Current CAD Variable Interest Rate per the Local Government Finance Authority

Cost of change of tyres

Fringe Benefits Tax Base value for FBT purposes * Statutory Rate per the ATO * FBT Rate per ATO * Gross up Rate per ATO Base value for FBT purposes = Original cost less registration and stamp duty plus the cost of any fitted non-business accessories plus dealer delivery charges plus GST and luxury car tax FBT rates can be found on the website ATO FBT Rates

https://www.ato.gov.au/Rates/FBT/


Cost to Council (Add up highlighted cells above)

Pool Discount (Cost to Council *40%)

Net Cost to Council * The Net Cost to Council is the amount to be salary sacrificed by the employee per annum through Payroll

*The Cost to Council for Type A Exclusive Private Use vehicle (5.1.1) must be less than $20,000 per annum (to be escalated from 1 July for each financial year based on the preceding March Adelaide All Groups CPI). The Cost to Council for Type B Restricted Private Use vehicle (5.1.2) must be less than $15,000 per annum (to be escalated from 1 July for each financial year based on the preceding March Adelaide All Groups CPI).

Make Fuel - Choose from list

Car Retention

(Years)

Purchase price including GST

Cost (exc stamp duty

and GST)

Approx. Resale after

(Ex GST)

% of resale on Cost (ex

GST & Stamp duty)

Kms/Ltr L/100 KM Fuel Service Insurance Change of tyres

Depreciation Financing costs

Total Per year cost

FBT Base Value for FBT

purposes*

Total cost to Council pa

Must be Less than $20k for

Exec

Salary Sacrifice 60%

ZL Outlander EXCEED 2.4L PHEV AWD ULP 2 $49,122 $44,717 $32,000 72% 50.00 2 408$ $530 $500 $472 6,359$ $1,207 $9,475 $9,475 $48,456 $18,950 $11,370

Cost to Council

notice of meeting - burnside.sa.gov.au · 5.1.1 “ancap” australian new car assessment program...

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