It is the policy of the Town of Barnstable to
authorize the acquisition and utilization of vehicles for use by officials
of the Town, in the conduct of their employment responsibilities,
consistent with the municipal vehicle procedure, as provided for herein,
and as may be modified from time to time. Municipal employees are
obligated to comply with the provisions of this procedure, when their
employment responsibilities require use of a municipal vehicle.
A.
Garaging of vehicles. All municipal vehicles not utilized
by control or emergency employees shall be garaged at the end of each
day in assigned municipal parking lots. No vehicles, excepting those
of control and emergency employees, are to be taken home at the end
of the workday, nor are vehicles available for personal use of any
kind. The only exception to this procedure is made when an occurrence
is anticipated where an employee is expected to be available for a
particular emergency event.
B.
Authority to assign vehicle for use. Department managers
are responsible for assignment of personnel to vehicles. Managers
are responsible for the vehicle use, maintenance, including cleanliness,
and storage. Managers shall ensure that the vehicle is routinely washed,
the interior cleaned, and the preventive maintenance schedule is observed.
Managers are responsible to the Town Manager for a full accounting
of all municipal vehicle usage.
C.
Operation of vehicle.
(1)
All employees are required to adhere to the following
minimum rules of operation of municipal vehicles:
(a)
Speed limits. Strictly observed, excepting emergency
vehicle operation.
(b)
Use of safety restraints. Seat belts, shoulder
harnesses, and other restraints should be worn by driver and all passengers
at all times vehicle is in motion.
(c)
Rules of the road. All traffic, driving and
road regulations are to be strictly observed. Courtesy is to be extended
to all entering and exiting traffic, whenever vehicle is operated
within the Town of Barnstable.
(d)
Use of controlled substances is strictly prohibited
by driver and all passengers.
(2)
Dependent upon department of origin, additional rules
of operation shall apply.
D.
General vehicle use regulations. No vehicle shall
be operated by any Town employee who does not hold a valid Massachusetts
operator's license of the class required for the specific vehicle
being operated, except when the employee is in a training status and
then only under the immediate close supervision of a qualified licensed
operator.
(1)
No vehicle shall be operated by a person who is not
an employee of the Town of Barnstable.
(2)
No employee shall be assigned or permitted to operate
a vehicle without the express authorization of the supervisor responsible
for the vehicle.
(3)
No vehicle shall be used for any purpose other than
the performance of official duties.
(4)
No vehicle shall be operated outside the boundaries
of the Town of Barnstable, except when necessary to reach other sections
of the Town, without the express permission of the responsible supervisor.
Exceptions to this rule shall apply when travelling to meetings being
held outside of the Town.
E.
Reporting of accidents. Whenever a municipal vehicle
is involved in an accident, or subject to damage, the employee operating
the vehicle is required to immediately notify his/her immediate supervisor,
and to then file an accident incident report at the Barnstable Police
Station. The supervisor is responsible for notifying his/her department
manager of the incident. The appropriate supervisory personnel, as
determined by the department manager, shall notify the Finance Department
of the accident, by completion and submittal of an accident incident
report.
F.
Registering and insuring a vehicle. All vehicle registrations,
renewals, trade-ins, insuring, and purchases shall be coordinated
through the Finance Department. No activity shall be conducted with
the Town's insurance agent without first receiving approval for processing
of insurance from the Finance Department.
G.
Annual vehicle activity report. Annually, on or before
January 31, each department manager shall submit to the Town Manager
a comprehensive report on the vehicles utilized by his/her department
in the preceding fiscal year. The report shall provide, at a minimum,
the following information:
(1)
Total number of vehicles in the department, classified
by department division if appropriate.
(2)
Personnel assigned to vehicle, if applicable.
(3)
Total annual mileage for each vehicle.
(4)
Manufacturer vehicle year, and date of purchase.
(5)
Assessment of vehicle condition.
(6)
Status of vehicle for next fiscal year (maintain in
use, trade/replacement, dispose as surplus/junk).
(7)
Massachusetts vehicle registration plate.
(8)
Vehicle identification number.
(9)
Title number and location for recording.
(10)
Accidents during prior year for each vehicle.
Each department shall establish a vehicle replacement
procedure which seeks to substantiate the replacement of municipal
vehicles on a regular basis. Included within the procedure for replacement
shall be:
A.
Vehicle purchase price, straight-line depreciation
over the vehicle's anticipated useful life, fair market value of vehicle
upon replacement request.
B.
Total mileage prior to replacement. Mileage will vary
dependent upon use conditions.
C.
Use conditions of vehicle affecting replacement schedule.
D.
Annual maintenance costs, averaged, anticipated should
replacement not occur, including major repairs, vehicle operating
problems.
E.
Vehicle insurance cost and fuel cost, both annually.
Effective as of January 1, 1985, municipalities
are required to monitor and tax employees' personal use of employer-provided
vehicles, pursuant to Internal Revenue Service rules. The following
procedure will establish the Town of Barnstable's compliance with
this federal regulation.
A.
CONTROL EMPLOYEES
EMERGENCY OFFICIALS
FRINGE BENEFITS
RECIPIENT
VALUATION
Definitions and use of terms. As used in this article,
the following terms shall have the meanings indicated:
Elected officials (Town Council, Town Clerk); appointed local
officers (executive) - Town Manager.
[Amended 6-20-2019 by Order No. 2019-208]
Those employees whose responsibilities require 24-hour response
to emergency situations, specifically law enforcement functions.
Includes an employer-provided automobile, excludes such items
as meals and lodging, provided for convenience of employer.
Person performing services in connection with which fringe
benefits are provided. An employer-provided fringe would be received
by the person who was provided the vehicle.
Employee must include in gross income the amount by which
the fair market value of the fringe benefit exceeds the amount which
the employee pays for benefit.
C.
Exclusion from gross income. Working condition fringe
benefits and de minimus fringe benefits are excluded from gross income
(i.e., any property or service provided to an employee to the extent
that, if the employee paid for it himself, the amount would be deductible
as a business expense). Substantiation requirements apply to working
condition fringe benefits, such as an employer-provided automobile.
Non-personal-use vehicles are exempted.
D.
Safe harbor rules for substantiation requirements.
To allow for working condition fringe exclusion vehicle not used for
personal purpose. Policy statement that prohibits personal use of
employer-provided vehicles. Commuting to and from work for control
and emergency employees excluded from fringe benefits as a de minimus
usage.
E.
Withholding and reporting requirements. The Town is
required to withhold federal income tax and social security taxes,
if applicable, on the value of the fringe benefit to be included in
the employee's gross income. Where personal use of vehicle is permitted,
records must be kept to substantiate the business use of the vehicle
in order to deduct that portion from income on his/her personal income
tax by employee. Method of inclusion of benefit in employee's gross
income can be:
F.
Valuation of employer-provided vehicles.
(1)
ALV: fair market value; safe harbor rules for fair
market value.
(2)
Owned by employer: employer's cost of buying auto
= fair market value.
(3)
Leased: retail value = fair market value.
(4)
Fuel cost: average fleet evaluation as well as gallon.
Random sample: 10% or 20 cars in fleet.
(5)
Cents/mile rate: allowed $0.22 per mile to be used
to determine value of personal use of employer-provided vehicle regularly
used for business or is driven at least 10,000 miles per year. Employer-provided,
but no gas: $0.22/mile can be reduced by $0.055. Vehicle cost $12,000
or less.
(6)
Commuting: $1.50 one way; $3 round trip. Not used
by control employee - elected/appointed officials.
(7)
Control employees authorized to utilize vehicles for
personal use: Town Manager.
(8)
Employees authorized to take home vehicle after work:
Town Manager, Chief of Police, Superintendent of Public Works, Airport
Manager, Assistant Airport Manager, Airport Environmental Field Supervisor,
Sandy Neck Ranger, other departmental supervisors or staff, when the
Town Manager or department manager has authorized same in order to
facilitate performance of the employee's work responsibilities, on
a per-occurrence basis.
G.
Substantiation requirements for personal use. [Note:
This section subject to modification to conform with IRS regulation
updates.] Commuting to and from work for control and emergency employees
is excluded from fringe benefits as a de minimus usage, per IRS regulations.
Commuting to and from work for all other employees is considered a
fringe benefit and commute is calculated at $1.50 one way; $3 round
trip. Employees are required to submit to Town Treasurer the form
entitled "Computation of Fringe Benefit of Employer Provided Vehicle."
Employees eligible to take vehicle home may request waiver from Town
Manager to this requirement, provided that commuting use of vehicle
ceases. Personal use for control and regular employees is considered
a fringe benefit and calculated at $0.22/mile for each personal use
mile. Employees are required to submit monthly to the Town Treasurer
the form entitled "Computation of Fringe Benefit for Personal Use
of Employer Provided Vehicle." Employees authorized to use employer-provided
vehicle for personal use include: Town Manager.
H.
Emergency use of employer-provided vehicles. As necessary,
the Town Manager or department manager responsible for municipal vehicles
may authorize a subordinate employee to take a vehicle home, after
work, for anticipated emergency use. Such emergency use would include
police operations, snowstorm, natural disaster, flooding, electrical
or building inspections on a weekend, when done in conjunction with
the Fire District, and airport emergency operations. When such emergency
use is less than three consecutive days in duration, no requirement
for computation of commuting use is required. Personal use of the
emergency vehicle is prohibited in this instance.
