Vehicle Use by Employees of the Milwaukee Department of Neighborhood Services

Kristen GrillErik LarsonTimothy 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

Evaluative Criteria

Cost Present costs in terms of two figures: average, annual cost

and average cost per mile

Productivity DNS employees’ abilities to conduct their work under a

vehicle use policy

Employee Safety

Safety of vehicles utilized by DNS employees

Equity Burdens placed on DNS employees by a vehicle use

policy

Feasibility Political and administrative feasibility

Cost: Status Quo The Status Quo costs between

$255,390 and $294,693 or 38 to 44 cents per mile

Summary of Vehicle Use Policy Costs

Status Quo100% City

Provision100% Personal

Provision Leased Vehicles

Cost

$255,390 - $294,693(annual)

38 - 44 cents per mile

$403,347 - $595,011

(annual)

60 - 89 cents per mile

$237,691(annual)

36 cents per mile

$533,900 (annual)

80 cents per mile

Cost: City Provision

City Provision costs range from $401,992 to $595,011, or 60 to 89 cents per mile

Summary of Vehicle Use Policy Costs

Status Quo

100% City Provision

100% Personal Provision Leased Vehicles

Cost

$255,390 - $294,693(annual)

38 - 44 cents per mile

$403,347 - $595,011(annual)

60 - 89 cents per mile

$237,691(annual)

36 cents per mile

$533,900 (annual)

80 cents per mile

Cost: City Provision

Annual Cost Estimates for City Provision of 116 DNS Vehicles

City ProvisionLow Estimate

(15-year life span)Moderate Estimate(10-year life span)

High Estimate(7-year life span)

Average yearly debt service or depreciation per vehicle $1,235 $1,709 $2,899

Average Maintenance Costs $1,432 $1,432 $1,432

Average Fuel Costs $797 $797 $797

Average Total Costs $3,465 $3,939 $5,129

Average Miles Driven 5,772 5,772 5,772

Average Per Mile Costs 60 cents 71 cents 89 cents

Total Costs to City $401,992 $456,949 $595,011Source: Authors’ calculations

Cost: Employee Provision Alternatives

Employee Provision would cost an estimated $237,691 per year, or 36 cents per mile

Summary of Vehicle Use Policy Costs

Status Quo 100% City Provision

100% Personal Provision Leased Vehicles

Cost

$255,390 - $294,693(annual)

38 - 44 cents per mile

$403,347 - $595,011(annual)

60 - 89 cents per mile

$237,691(annual)

36 cents per mile

$533,900 (annual)

80 cents per mile

Cost: Vehicle Lease Alternative

Leasing would cost an estimated $533,900 or 80 cents per mile

Summary of Vehicle Use Policy Costs

Status Quo 100% City Provision100% Personal

Provision

Leased Vehicles

Cost

$255,390 - $294,693(annual)

38 - 44 cents per mile

$403,347 - $595,011(annual)

60 - 89 cents per mile

$237,691(annual)

36 cents per mile

$533,900 (annual)

80 cents per mile

Employee ProductivityEvaluation of Productivity by Vehicle Use Policy

Status Quo100% City

Provision100% Personal

ProvisionLeased

Vehicles

Productivity Medium High Medium High

Percentage of Survey Respondents Who Said That Their Vehicle Broke Down While in the Field During the Past Twelve Months

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Personal vehicle City owned vehicle

Per

cent

age

of r

espo

nden

ts

NoYes

Employee SafetyEvaluation of Employee Safety by Vehicle Use Policy

Status Quo100% City

Provision100% Personal

ProvisionLeased

Vehicles

Employee Safety Medium Medium Medium High

Those who Drive City Vehicles are Less Likely to Agree with the Statement “The Vehicle that You Use at DNS is Safe”

0

5

10

15

20

25

30

35

40

45

Personal vehicle City owned vehicle

Num

ber

of r

espo

nden

ts

AgreeNeutral Disagree

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

Final Recommendation: Employee Vehicle Provision

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