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10.c1 Take Home Vehicle Policy Staff ReportSCANDIA Staff Report Date of Meeting: March 21, 2023 To: Mayor and City Council From: Anne Hurlburt, Interim City Administrator Re: Take -Home Vehicle Policy Issue: Scandia does not currently have a policy allowing for take-home vehicles. The Council reviewed a draft policy at its March 1, 2023 work session meeting. Based on that discussion, staff has revised the draft and is presenting it for review and possible approval. Background: There are times when it may benefit the city for employees to respond to emergencies or urgent city business directly from their homes. The city may allow for a "take-home" vehicle in such circumstances. This may reduce response times and save money by reducing overtime or call -out pay, potentially reduce the miles travelled, as well as provide a convenience to the employee. New policy language would be needed for this to occur. Staff (Administrator, Public Works Director, Fire Chief and City Attorney) have worked together to draft and revise the policy. We reviewed sample policies adopted by other cities as well as general information on this topic provided by the Minnesota League of Cities (LMC) and the LMC Insurance Trust (LMCIT.) The city has existing policies regarding driving while on city business (see Personnel Policy Section 10. Employee Responsibility, Subsection f) which requires employees to drive safely and legally and to maintain a good driving record. There would be no change to these policies. Section 10. Employee Responsibility, Subsection 1) governs employee use of city vehicles, equipment, supplies, tools, uniforms and facilities. A minor amendment to this section would be needed to coordinate with the new policy on take-home vehicles, because the exiting language prohibits all personal use. The new policy would allow for commuting and de minimus/ incidental personal use. Revised Draft: A redlined version of the draft policy reviewed on March 1 is attached, showing the changes proposed to address the concerns discussed at the meeting: • Language was added to Section 1, Purpose, to make it clear that the purpose of the policy is to benefit the city by reducing response times and increasing the efficiency of the Public Works and Fire Departments. The intent is not to provide an employment benefit or to encourage the addition of vehicles or equipment to the City's fleet. • Minor edits were made to clarify that take-home vehicles may be approved by the City Administrator or the Department Head. A paragraph was added to clarify that nothing in this policy restricts the Fire Chief from allowing an employee to use a public safety vehicle for personal use beyond what is allowed by this policy, if such use benefits the city and the employee's ability to respond to public safety related service demands, consistent with state law. • Edits were made to paragraph 3.A. (On -Call) to clarify that an on-call is not necessarily a supervisor. With our current level of staffing and department structure, this is likely to be the case but may not always be. Recommendation: I recommend that the Council adopt the two attached resolutions: 1) Adopting the Take -Home Vehicle Policy (Resolution 03-21-23-07); and 2) Amending the Personnel Policy (Resolution 03-21-23-08 ). Attachments: 1. Draft Policy, Redlined Version 2. Draft Resolutions DRAFT (3/17/2023) TAKE-HOME VEHICLE POLICY Approved by City Council on , Resolution No. 1. Purpose: The purpose of this policy is to allow for the use of City take-home vehicles and the assignment and use of City vehicles outside the standard work day and work week when it benefits the city by reducing response times and increasing the efficiency of the Public Works and Fire Departments. The intent is not io provide an employment benef t or to encourage the addition of vehicles or equipment to the C'ity_s tleet- Each employee authorized to use a city vehicle will sign a statement that he or she has read and understands the policy. This policy supplements but does not replace any of the language in the city's general personnel policy governing safe driving and use of vehicles, equipment, supplies, tools, uniforms and facilities. Minnesota Statutes Section 471.666 also govern the use of publicly owned automobiles and is attached to this policy. 2. Take -Home Vehicle Policies: A. Definition of Take -Home Vehicle: Any car, truck or special equipment vehicle that is owned, leased or rented by the city which is assigned to a particular employee to take home for business-related purposes as identified in this policy. B. If an employee is assigned a City take-home vehicle, this assignment shall be made consistent with Minn. Stat. 471.666 to confer a benefit upon the city. The only "personal use" of the vehicle permitted is travelling to and from the employee's residence and the place of work, and personal use that is clearly incidental to normal workday activities. C. "Clearly incidental" personal use shall mean use that does not involve additional travel or expense to the City, and does not create an impression that the vehicle is being used for personal reasons such as shopping, recreation, transportation of family or friends, etc. If in doubt as to whether a particular use is permitted, employees should seek supervisory approval. If an accident or medical emergency arises necessitating transport of passengers other than city personnel, the employee assigned the vehicle shall notify his immediate supervisor or the City Administrator as soon as possible of the nature of the emergency. Draft Take Home Vehicle Policy D. Assigned take-home vehicles may be utilized for de minimis personal errands during the workday for transportation clearly incidental to normal workday activities. Employees will make every effort to minimize events of this nature. E. Unauthorized use of a take-home vehicle may expose the individual to risk that city's insurance coverage will not cover. F. Emergency road service for take-home vehicles commuting outside the city limits shall be the responsibility of the employee to whom the vehicle is assigned. G. Whenever an employee who is assigned a city take-home vehicle is on vacation or any other leave for more than two consecutive days, the vehicle may be reassigned by the City Administrator or Department Head, or parked in the appropriate City lot. H. A record of take-home vehicle mileage will be monitored on a monthly basis by the Department Head. Employees assigned vehicles may be required to document reasons for significant month-to-month variances. Other monitoring may entail unannounced visits to sites where vehicles are parked overnight. I. In the event any of the above guidelines are not observed, an employee using a take- home vehicle for personal purposes shall reimburse the City at the prevailing mileage rate and disciplinary action may be taken. J.—Take-Home Vehicle Tax Liability: The City is required to comply with the IRS's regulations regarding the reporting of income. Since the only authorized non -business use is commuting and de minimis personal errands the city will use the Commuting Valuation method to report income. This method will use $3 per day for each day of commuting as the amount of taxable income reported to the IRS so long as the user lives within the city or within 3 miles of the city limits. The income value to a user who lives further than 3 miles from the city limits may be calculated on a per mile basis in lieu of the $3/day IRS rate. This amount may be amended by the IRS at any time. Marked and unmarked law enforcement vehicles and fire emergency response vehicles are excluded from this IRS requirement. 3.K. Nothing in this policy shall restrict the Fire Chief from allowing an employee to use a public safety vehicle for personal use beyond what is allowed by this policy, if such use benefits the city and the em . iovee's abil its• to respond to public sa.tet related service demands. 3. Eligibility. Eligibility for a take-home vehicle will be determined on a case-by-case basis and may be modified for any or no reason and at any time. Generally, for an employee to be assigned a take-home vehicle for commuting purposes, the City Administrator or Department Head must find that one or more of the circumstances identified in Minn. Stat. section 471.666 exist (see attachment A). The following factors shall be utilized in making this determination: Draft Take Home Vehicle Policy 2 A. On Call — An employee designated to be generally available to respond to off -hours situations. `T4his individual w+iu44-mai be a public safety officer with responsibility for responding to calls outside of that individual's normal work hours, or an employee in -di� tof ofmfirst level supervisor 14 a line work unit with an assigned responsibility to respond to service disruptions or other extraordinary events outside normal work hours. B. Emergency Availability — Employee has supervisory responsibility for a line operation that provides services or maintains facilities on a 24-hour, seven-day schedule. Department operations are characterized by employees who work a six or seven-day week; extended hours; and/or frequent overtime. Employee is called for emergencies which demand his or her expertise, experience, knowledge, judgment, and command ability. C. Service Supervision — Due to the nature of the position, the responsibilities of the position and organization of the Department the individual is required to supervise programs and services at night and on weekends to ensure proper performance. The key difference between this category and the Normal Work Demand category is the nature of the activity; the amount of the activity; and the fact the activity is demanded by organizational consideration. D. Normal Work Demand — Employee normally works a standard workweek and is regularly required to attend work events at places other than the employee's primary place of assignment outside of normal work hours. E. Special Circumstances-- Employees not generally authorized to take a vehicle home may do so, with the approval of the City Administrator or Department Head, when a specific need arises. A specific need may be a spontaneous demand such as a service inspection, a planned use such as a conference, or to cover the absence of an employee authorized a take home vehicle. Draft Take Home Vehicle Policy Attachment A: M.S. 471.666 471.666 PERSONAL USE OF PUBMC'LY OWNF-D A[TONIOBJELES PRORMITED. Subdivision 1. Definitions. For purposes of this section the following! definitions shall apply: (a) "Local government vehicle" means a vehicle owned or leased by a political subdivision of the state of'N innesota or loaned to a political subdivision. (b) "Political. subdivision" means. a statuton- or home rule charter city, count_ toxx n, school district, metropolitan or regional agency; or other special purpose district of this state. (c) ^Local government employee" or "emplovee" means an individual %Nho is appointed or employed by a political subdivision, including all elected officials of political subdivisions. Subd. I Restricted uses. A local government vehicle may be used only for authorized local soveinment business- mcluding personal use that is clearly incidental to the use of the vehicle for local government business. A local gavemmentt Vehicle ma_v not be used for transportation to or from the residence of a local govemment employee, except as provided in subdivision 3. Subd_ 3. Permitted uses. A local government vehicle may be used by a local government employee to travel to or from the employee's residence: (1 ) in connection with work-related activities during hours when the employee is not working. (2) if the employee has been assigned the use of a local government vehicle for authorized local government business on an extended basis_ and the employee's priman: place of work is not the local government work station to which the employee is permanently assigned; or (3) if the employee has been assigned the use of a local government vehicle for authorized local government business away from the work station to which the employee is pem=ently assigned. and the number of miles traveled. or the time needed to conduct the business, will be minimized if the employee uses a local government vehicle to travel to the employee's residence before or after traveling to the place of local government business. Subd. 4. Excepttous. This section does not apply to public safety vehicles that are owned or leased by a political subdivision. History: 1993 c 315 s 16 Draft Take Home Vehicle Policy Attachment B: ACKNOWLEDGMENT STATEMENT I hereby acknowledge that I received a copy of the City of Scandia's Take -Home Vehicle Policy dated . I understand I is my obligation to read and abide by its terms and procedures. I understand that a copy of this acknowledgement statement will be placed in my personnel file. Employee, Please Print Full Name Signature Witness by Supervisor: Supervisor, Please Print Full Name Signature Draft Take Home Vehicle Policy Date Date