1. Kristen Grill Erik Larson Timothy Steiner
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

4. Evaluative Criteria Cost Productivity Employee Safety Equity
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

5. Summary of Vehicle Use Policy Costs
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
Status Quo
100% City Provision
100% Personal Provision
Leased Vehicles
Cost
$255,390 - $294,693
(annual)
cents per mile
$403,347 - $595,011
cents per mile
$237,691(annual)
36 cents per mile
$533,900 (annual)
80 cents per mile

6. Summary of Vehicle Use Policy Costs
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
Status Quo
100% City Provision
100% Personal Provision
Leased Vehicles
Cost
$255,390 - $294,693
(annual)
cents per mile
$403,347 - $595,011
cents per mile
$237,691(annual)
36 cents per mile
$533,900 (annual)
80 cents per mile

7. Annual Cost Estimates for City Provision of 116 DNS Vehicles
Cost: City Provision
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
Average Fuel Costs
$797
Average Total Costs
$3,465
$3,939
$5,129
Average Miles Driven
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

8. 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
Status Quo
100% City Provision
100% Personal Provision
Leased Vehicles
Cost
$255,390 - $294,693
(annual)
cents per mile
$403,347 - $595,011
cents per mile
$237,691(annual)
36 cents per mile
$533,900 (annual)
80 cents per mile

9. Cost: Vehicle Lease Alternative
Leasing would cost an estimated $533,900 or 80 cents per mile
Summary of Vehicle Use Policy Costs
Status Quo
100% City Provision
100% Personal Provision
Leased Vehicles
Cost
$255,390 - $294,693
(annual)
cents per mile
$403,347 - $595,011
cents per mile
$237,691(annual)
36 cents per mile
$533,900 (annual)
80 cents per mile

10. Employee Productivity
Evaluation of Productivity by Vehicle Use Policy
Status Quo
100% City Provision
100% Personal Provision
Leased Vehicles
Productivity
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
Status Quo
100% City Provision
100% Personal Provision
Leased Vehicles
Employee Safety
Medium
High
Those who Drive City Vehicles are Less Likely to Agree with the Statement
“The Vehicle that You Use at DNS is Safe”

12. 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” Employee Provision rates “high”
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

14. 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