Vehicle Use by Employees of the Milwaukee Department of Neighborhood Services

1
Vehicle Use by Employees of the Milwaukee
Department of Neighborhood Services

• Kristen Grill
• Erik Larson
• Timothy Steiner

2
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

3
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

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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
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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 Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs 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
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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 Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs 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
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Cost City Provision
Annual Cost Estimates for City Provision of 116 DNS Vehicles Annual Cost Estimates for City Provision of 116 DNS Vehicles Annual Cost Estimates for City Provision of 116 DNS Vehicles Annual Cost Estimates for City Provision of 116 DNS Vehicles
City Provision Low 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 401,992 456,949 595,011
Source Authors calculations Source Authors calculations Source Authors calculations Source Authors calculations
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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 Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs 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
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Cost Vehicle Lease Alternative

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

Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs Summary of Vehicle Use Policy Costs 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
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Employee Productivity
Evaluation of Productivity by Vehicle Use Policy Evaluation of Productivity by Vehicle Use Policy Evaluation of Productivity by Vehicle Use Policy Evaluation of Productivity by Vehicle Use Policy Evaluation of Productivity by Vehicle Use Policy
Status Quo 100 City Provision 100 Personal Provision Leased 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
11
Employee Safety
Evaluation of Employee Safety by Vehicle Use Policy Evaluation of Employee Safety by Vehicle Use Policy Evaluation of Employee Safety by Vehicle Use Policy Evaluation of Employee Safety by Vehicle Use Policy Evaluation of Employee Safety by Vehicle Use Policy
Status Quo 100 City Provision 100 Personal Provision Leased 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
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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

13
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

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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