HomeMy WebLinkAboutQ- 4 Transportatio Reimbursement- City Manager of a�
The Cityfo Azusa
'Tt JpOS-1° 213 E.Foothill Blvd.,Azusa Gliforaia 91702
(626)812-5224 Fax(626)334-6358
Geoffrey J.Craig
Assistant City Manager
AGENDA ITEM
TO: HONORABLE MAYOR&MEMBERSTHE CITY COUNCIL
FROM: :GEOFF CRAIG,ASST.CITY MANA r :�j
VIA: RICK COLE,CITY MANAGER(
DATE: APRIL 5,1999
SUBJECT: TRANSPORTATION REIMBURSEMENT-CITY MANAGER
Recommendation
The 3-year lease on the 1997 Buick LeSabre that the City acquired for use by the City Manager has expired.
The City's contract with Mr.Cole provides that,in lieu of furnishing the automobile,the City may provide
a car allowance or it may reimburse him for the cost of acquiring,insuring,utilizing and maintaining his own
automobile. This report recommends that Council approve taking the latter approach.
Background
Three years ago the City leased a 1997 Buick LeSabre for use by the City Manager. The lease payments
were$398.15 per month and the lease has now expired. According to lease provisions,upon surrender of
the automobile,the City must pay an amount of$2,475.20 due to the mileage of the vehicle. The value of
the car is$8,285.00. To purchase it would cost$ 17,103.00. However,the City Manager prefers to utilize
his own car and there is not a need for a City"pool"car at this time. Thus,the recommendation is to return
the LeSabre to Reynolds Buick.
The City's contract with Mr.Cole provides that,in lieu of providing an automobile,the City can pay him a
car allowance or it can reimburse him for the cost of acquiring,insuring,utilizing and maintaining his own
automobile,not to exceed$500 per month. The latter approach carries fewer tax consequences,both existing
and potential future, for the City and for Mr. Cole. Each month, Mr. Cole would submit for payment an
accounting of his automobile expenses. A typical month might look like this:
Lease Payment $369.00
Insurance(1/6 of semi-annual payment amount) 98.00
Gasoline&Oil(Receipts attached) 43.00
Maintenance and Repairs 75.00
Total $585.00
4' l
7/7/99
Honorable Mayor&Members of the City Council
April 5, 1999
Page 2
Of this amount, Mr. Cole would be limited to receiving $500,00; however, it would be reasonable to
reconsider the unreimbursed Maintenance and Repairs($75.00 in the above example) in any future month
(within the same tax year) in which the automobile operating expenses are below$500.00.
Fiscal Impact
Except for the mileage charge on the LeSabre,which is one-time and will be paid from 101-400-7102-6069-
Allowances/Vehicle,the$500 monthly expense is equivalent to current cost and will have no overall impact
on the City budget.