Agenda

Return

D.4

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	July 28, 2015

Contra

Costa

County

Subject:

BOARD OF SUPERVISORS COMPENSATION FOLLOW-UP

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 07/28/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

Contact:

David Twa 925-335-1080

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: July 28, 2015
,

BY:	, Deputy

RECOMMENDATION(S):

RECEIVE supplemental information requested by the Board on July 7, 2015 regarding the auto allowance for Board members and CONSIDER action to be taken on Board compensation.

FISCAL IMPACT:

100% County General Fund. The July 7 recommendation of the Ad Hoc Committee on Board of Supervisors Compensation to increase the Board’s base salary would result in a total increased payroll cost of approximately $91,540, of which $22,560 is employer retirement cost. The average annual incremental cost would be $30,500.

The fiscal impact of the Ad Hoc Committee’s recommendation to eliminate mileage reimbursement from the monthly auto allowance benefit will vary depending on the number of miles driven per month by individual Supervisors and whether or not they would choose to use a County fleet automobile in lieu of other compensation.

BACKGROUND:

During its July 7 deliberations on Board of Supervisors compensation, the Board asked for the following information with regard to its auto allowance:

The history of the automobile and mileage allowance
Actual mileage reimbursement history for each Supervisor
The comparable cost of a County fleet automobile

History of the Automobile and Mileage Allowance. The Executive Automobile Allowance was first granted on August 1, 1979 (Resolution Nos. 79/781 and 80/214) at the rate of $150/mo plus $0.17/mile (IRS mileage rate) to any elected official or appointment department head who had been assigned a county automobile and elected to turn it in and use his/her private automobile instead. That Resolution also permitted department heads who had not previously been assigned a county automobile to receive the allowance if they agreed to a corresponding reduction of $100/mo in their proposed salary increase. The Board increased the auto allowance gradually over time and the mileage reimbursement rate continued to be indexed to the Internal Revenue Service mileage rate:

Effective	Allowance	Authority
1/1/1990	$400 plus mileage	Res. 89/77
10/1/1998	$450 plus mileage	Ord. 98-15
12/14/1999	$550 plus mileage	Ord. 99-57
7/1/2007	$600 plus mileage	Ord. 06-70

In 1986, the Board passed Resolution No. 86/702, which permits individual members of the Board of Supervisors to arrange for use of a County-owned, maintained, and insured automobile for County business in lieu of receiving the auto allowance.

Actual Mileage Reimbursement History for Each Supervisor. Individual members of the Board of Supervisors may submit monthly demands for reimbursement of personal costs incurred in the conduct of County business. Summarized below is the 16-year history (FYs 2000-2015) of mileage claimed by each Supervisor.




Comparable Cost of Arranging for a County Automobile in Lieu of Auto Allowance. The County provides automobiles through the Fleet Internal Services Fund (ISF). Charges to departments for maintaining an automobile in the ISF include a fixed monthly charge for depreciation and insurance, and a variable per mile charge for preventive maintenance. The standard sedan of the County fleet is the Ford Fusion. For the purpose of comparing the cost of the Board’s auto allowance benefit with the cost of providing an automobile from the County’s fleet, we have used the upgraded Ford Fusion Hybrid in observance of the Board’s low emission automobile policy.

In the table on the following page, the initial purchase price of the automobile is amortized over the 84-month automobile life, after which the depreciation charge drops out and the automobile can be replaced at no additional charge through the ISF (replacement cost is funded through vehicle depreciation).

COUNTY FLEET ISF VEHICLE:
Ford Fusion Hybrid	$ 31,000.00
Tax and License	3,290.00
	$ 34,290.00
Amortized over 84 months	$ 408.21

Average mileage allowance over 84 months until replacement review at 90,000 miles	1,071

Purchase Price, Tax and License	$ 408.21
Depreciation over 84 mos (7 years)	284.83
Preventive Maintenance @ .167/mile for 780 miles/mo	130.26
Fuel assuming 27 MPG @ $3.50/gal	101.11
Monthly Cost, Years 1-7:	$ 924.42
Monthly Cost, Years 8 and forward:	$ 516.20

CLERK'S ADDENDUM

RECEIVED the supplemental information regarding auto allowance for Board members; DIRECTED the County Administator to return to the Board with an ordinance to provide a 12% salary increase spread over three years beginning January 1, 2016, continuing the auto allowance at its current rate and limiting mileage reimbursement to out-of-district mileage; and further DIRECTED the County Administrator to return with a management resolution to make the auto allowance an equal amount amongst all elected department heads.