HomeMy WebLinkAboutIR 8690INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8690
To the Mayor and Members of the City Council June 7, 2005
Gw)l Page 1 of 2
• SUBJECT: MOTORCYCLE ALLOWANCE PROGRAM AND MOTORCYCLE
1.,% LEASING
At the request of the Motor Unit and City Council, staff began reviewing the current motorcycle
allowance in comparison to on -going costs. As you may recall, on December 12, 2000 (M &C G- 13102),
the City Council authorized the creation of a $475 motorcycle allowance for officers and sergeants
assigned to the Motor Unit. The purpose of the program was to address the age of the fleet owned by the
City, the increase in officers assigned to the unit, and the stated desire by officers to choose the make
and model of their bikes within defined parameters. The outcome was anticipated to be the improved
condition of the bikes, improved safety for the officers, and a cost- effective plan for both the City and
the officer.
Separately, staff returned to the City Council with Informal Report #8323 on May 8, 2001, regarding
insurance and fuel prices. There were fairly significant differences in the cost of insurance for officers
depending on place of residence, etc. In addition, at the time, fuel prices were rising and the original $30
per month was insufficient. As a result, staff recommended reimbursement for the insurance cost
separately leaving additional funds for fuel costs in the $475 base reimbursement allowance.
I. Motor Allowance Rate
The table below provides a summary of the original cost estimates for the Harley Road King compared
i to current estimated average monthly costs.
Staff recommends that we increase the rate of pay for the officers who currently own bikes from $475 to $515
monthly for a total of $6,180 annually to offset rising fuel/repair costs. This change would be accompanied by the
ability of officers to submit additional mileage reimbursements at the federal rate for any miles in excess of 2,250
per quarter, increasing the payment to officers actually incurring the operating expense. The policy has also been
modified to allow reimbursement of tire damage costs when it occurs in course and scope of employment.
H. Future of Motor Program
When the motor allowance program was originally conceived, various leasing programs were
researched. At the time, the most viable program was the Harley Davidson; however, service for a fleet
this size was only available in Allen which presented considerable costs to the City in terms of lost
productivity since all routine service would be required at that site. Since that time, additional service
sites have become available, allowing convenient service for a fleet leased directly by the City. In
researching the options, staff believes that we will be able to achieve lease pricing between $2,900 and
$3,900 per motorcycle depending nal specifications and bid responses. g on p It is expected that these will
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
Original Plan Estimates
Typical Costs 2005
Annual Payments
(Typical is reported at current median)
3,771
3,780
Fuel
808
630
Maintenance/Repairs/License, etc.
430
1,179
Tax Liability
600
588
Total
5,609
6,177
Staff recommends that we increase the rate of pay for the officers who currently own bikes from $475 to $515
monthly for a total of $6,180 annually to offset rising fuel/repair costs. This change would be accompanied by the
ability of officers to submit additional mileage reimbursements at the federal rate for any miles in excess of 2,250
per quarter, increasing the payment to officers actually incurring the operating expense. The policy has also been
modified to allow reimbursement of tire damage costs when it occurs in course and scope of employment.
H. Future of Motor Program
When the motor allowance program was originally conceived, various leasing programs were
researched. At the time, the most viable program was the Harley Davidson; however, service for a fleet
this size was only available in Allen which presented considerable costs to the City in terms of lost
productivity since all routine service would be required at that site. Since that time, additional service
sites have become available, allowing convenient service for a fleet leased directly by the City. In
researching the options, staff believes that we will be able to achieve lease pricing between $2,900 and
$3,900 per motorcycle depending nal specifications and bid responses. g on p It is expected that these will
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
li�4Iri,
To the Mayor and Members of the City Council
No. 8690
June 7, 2005
Page 2 of 2
4 SUBJECT: MOTORCYCLE ALLOWANCE PROGRAM AND MOTORCYCLE
LEASING
be one -year leases and will include unlimited mileage and brake service, all maintenance and warranty
repairs, and up to two sets of tires. In addition, because this arrangement will be a direct lease by the
City, we can assume the liability under the City's self-insurance plan instead of requiring private
insurance reimbursement.
Current Program
Motor Allowance ($475 per month x 35 positions)
Insurance Reimbursement
Current Program (Revised Rate)
Motor Allowance ($515 per month x 35 positions)
Excess Mileage Reimbursement (based on Q1)
Insurance Reimbursement
$199,500
19,800
$219,300
$216,300
$ 10,639
19,800
$246,739
Proposed Lease Program (projected) Maximum Minimum
Lease Payment (38 for spares) $148,200 $110,200
Fuel $ 29,400 $ 29,400
Lost Productivity (2 hours per month) 25,200 25,200
$202,800 $164,800
The original program assumed that we would maximize productivity with off -duty maintenance. In
addition, we assumed that the overhead costs for administering the program would be reduced since
procurement would be eliminated. This assumption, however, was ambitious due to the on -going payroll
issues and employee issues, etc., that consumed administrative time. All in all, this was a successful
program that reduced the cost and improved the quality of the fleet as planned; however, a more
effective alternative is now available with the lease option.
Staff will prepare an M &C authorizing the increase in the motorcycle allowance rate and the ability to
make additional payments for mileage reimbursement for officers exceeding 2,250 miles per quarter.
Separately, an M &C authorizing a contract to directly lease motorcycles will be presented to City
Council for consideration at a later date.
Should you have any questions, please feel free to contact Susan Alanis, Assistant Director at (817)392-
4221.
01,L, q-- 9,,-U
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS