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HomeMy WebLinkAbout2003-07-28 03-247 ORDER)UNCIL ACTION Item No. 03-247 Date: 7-28-03 Item/Subject: ORDER, Authorizing the City Manager to Adjust Certain Mileage Allowance Stipends Responsible Department: Executive -Human Resources Commentary: Currently, nine employees (prlmadly Department Heads and Directors) receive a fixed mileage stpend for use of their personal vehicle while on City business. Those stipends arepartof Ne employee's employment agreement with the City and are a part d their overall compensation and benefit paclage. The vast majority of these stipends have not been adjusted for a considerable number of years, many have not changed since originally established The total annual cost for these adjustments Is slightly less than $2,900. This Order would adjust the stipends by 15.5%, effective July 1, 2003. This Is the same percentage Increase as the last adjustment to the Crys standard mileage reimbursement rate. Department Head Manager's Constants: This was raneneod and recommended for approval by the Government Operators Committee on July 16, 2003. City Manager Assudated Information: Order, Memorandum Budgnt Approval: Finance Director City Solicitor Introduced for x Passage _ First Reading Page _ cf Referral 03-247 Aaaigoed bCouxiim eam r July 28, 20D3 CITY OF BANGOR (1TTLE.) : ORDER, Authorizing the City Manager to Adjust Certain Mileage Allowance Stipends By the city COvi &Ne Ory ofAaigar. ORDERED, WHEREAS, a limited number of employees receive fixed mileage stipends for use of their personal vehicle while on Cry business; and WHEREAS, the mileage stipends have not been adjusted for a considerable number of years; and WHEREAS, in 2002, the City Council adjusted the mileage reimbursement rate by 15.5%, reflecting the increased cost of operating a motor vehicle. NOW, THEREFORE, BE IT ORDERED, THAT: the following list of employees shall have their mileage stipend increased by 15.5% on an annual basis effective Jury 1, 2003: D. Winslow, J. Daniels, B. Birch, M. Dyer, R. Hupp, S. Bolduc, R. Bums, J. Ring, R. Mcl(ay. m sxxy coDmc2h July 2g.200J Passed LT CLIDQ 0 O}267 ORDER (TRLE,) earhorxttag the city manager to gdJast Certain Mileage Allowance Stipends 03-267 To: Edward A. Barrett, City Manager From: Robert W. Farrar, Assistant City Manager Subject: Mileage Allowance Stipends Date: July 1, 20D3 As you know, certain City employees receive a fixed mileage stipend for use of their personal vehicle for City business in lieu of reimbursement on a per mile basis. The vast majority of these employees are covered by an employment agreement and the mileage stipend is a negotiated condition contained within the agreement To the best of my knowledge, only one or two of the mileage stipends have been adjusted since the original employment agreements were negotiated and approved, some dating as far back to the early 1990's. In April 2002, the City Council adjusted the mileage reimbursement rate from .29 cents/mile to 33.5 cents/mile, an increase of 15.5%. Prior to that, it had been several years since the last increase. With the passage of time, the recent increase in mileage reimbursement ate, and in faimess to this group of employees, I am proposing that mileage stipends be increased by the same 15.5% adjustment I would further recommend that this proposal become effective with the beginning of the City's new fiscal year, July 1, 2003. Below please find a listing of employees, their current and proposed stipend rates. Employee Current Annual Proposed Annual Dollar Increase Stipend Stipend D. Winslow $3,600 $9,158 $558 J. Daniels $3,600 $4,158 $558 B. Birch $2,012 $2,324 $312 M. Dyer $1,500 $1,733 $233 It Rupp $3,000 $3,%5 $%5 S. Bolduc $1,200 $1,386 $186 *R. Bums $46 $53.13 $7.13 J. kng $1,200 $1,386 $186 R. McKay $1,200 $1,386 $186 *R. Bums reames a weekly mileage stipend for approximately 12 weeks per year. The additional annual cost to make these recommended adjustments is approximately $2,860. As these primarily relate to employees with employment agreements, a Council Omer will be necessary to authorize the changes. As a starting point, this Issue would be appropriate for the Government Operations Committee to consider this proposal prior to Council action. NOTE: The Qty Manager receives a mileage stipend of $2,500 annually but has requested that any discussion occur in conjunction with his annual evaluation.