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					Policies on Specific Commodities/Services
Number: 5.08

Subject: UNIVERSITY VEHICLES AND RELATED VEHICLE EXPENDITURES

ENCOMPASSING
Vehicle Acquisition, Vehicle Disposal, Fuel Purchases, Repair and Maintenance,
Insurance & Accident Claims, and Personal Tax Benefits

POLICY
Purpose: To establish detailed Purchasing Policy and Procedures relating to "University
Vehicles and Fuel/Maintenance Credit Cards".

Scope: This policy applies to all University Vehicle acquisitions (purchased or leased),
vehicle sales or disposal, and Fuel/Maintenance Credit Cards, chargeable to any funds
administered by the University.

DEFINITIONS
University Vehicle: Any on-road or off-road vehicle purchased or leased in the name of
the University through funds administered by the University that, in accordance with the
laws of the Province of Quebec, requires it be registered through the Société de
L'assurance Automobile du Québec, and any vehicle which meets the same criteria but is
situated outside of Quebec.

Non-Dedicated Vehicle: A vehicle which is assigned to a department/unit for use by any
employee of McGill University (herein referred to as Employee) to fulfil his/her duties.

Private Vehicle: A vehicle which is dedicated for individual use only.

Vehicle Operator (herein referred to as the Operator): Authorized person
driving/operating the University Vehicle.

The Fleet Management Coordinator (herein referred to as the FMC): The University
Purchasing Services or a Fleet Management Firm selected by University Purchasing
Services through a formal competitive bid process contracted to render services related to
acquisition (purchase or lease) and disposal of vehicles.

The Fleet Services Firm (herein referred to as the FSF): A Fleet Management Firm
selected by the University Purchasing Services through a formal competitive bid process
contracted to render administrative services related to the purchase of fuel and
maintenance requirements.

Fuel/Maintenance Credit Card: A credit card issued by the FSF for a given vehicle for
purchases of fuel and maintenance requirements from major service centers as part of the
FSF's national account in Canada and the United States.




Update May 12, 2004                                                             Page 1 of 9
Fleet Coordinator: The University Employee designated to coordinate the day to day
activities relating to University Vehicle(s) within a specified department/unit.

RESPONSIBILITIES
The University Purchasing Services:
      Development of vehicle management policy and procedures;
      Monitoring policy conformance;
      Selection of the FMC and FSF through a formal competitive bid process;
      Coordination of procurement and disposal of vehicles;
      Development of fuel/maintenance management program;
      Assessment of the program for continuous improvement.

Fleet Coordinators:
       Administration of vehicles on a day to day basis;
       Coordination of lease contracts;
       Audit of invoices (purchase, rental, disposal, fuel and maintenance);
       Short term lease arrangements;
       Liaison between Operator and the FMC and/or FSF;
       Renewal of registrations and license plates;
       Preparation of list of authorized Operators;
       Tracing traffic infractions.

Risk Management and Insurance Department (herein referred to as the Risk
Management Department):
      Development of insurance policy and procedures applicable to University
      Vehicles;
      Monitoring the application of the University Automobile Insurance Policy and
      Procedures throughout the University;
      Selection of an insurance carrier;
      Coordination of accident claims.

Payroll and Budget Department:
       Calculation and reporting of taxable benefits.

University Secretariat/Instructional Communication Centre:
      Establishing the standards relating to the University Wordmark and Insignia.

PERTINENT CONTACTS
Purchasing Services: Anna Gentile 398-1720
Risk Management and Insurance Department: Ellen Kingsley 398-6251
Payroll and Budget Department: Mavis Smith 398-1065

APPROVAL PROCESS
Prior to purchase or lease of any vehicles and/or prior to obtaining any related
Fuel/Maintenance Credit Card(s), written approval is required from the Dean or Director
of the area concerned, and the Vice-Principal to whom the area reports.



Update May 12, 2004                                                            Page 2 of 9
Note:
        When a vehicle purchase or lease is requested for use by a Vice Principal, the
        written approval of the Principal is required;
        When a vehicle purchase or lease is requested for use by the Principal, the written
        approval of the Chair of the Board of Governors is required.

ELIGIBILITY
Scope
The Vehicles owned or leased by the University may be operated only by University
Employees and may not be used for personal purposes except where otherwise expressly
permitted by the written approval of the Dean or Director and the Vice-Principal in
accordance with the "Approval Process" section of these Guidelines and Procedures. The
Operator of record will be held responsible for unauthorized use of any University
Vehicle.

Qualification of the Operator
The Operator must possess a valid, unrestricted driver's license or permit;
He/she must have an acceptable previous driving record. The University reserves the
right to verify Operator's driving record if necessary and Operator hereby gives the
University permission to do so.

Personal Use of a University Vehicle
Except where otherwise expressly permitted by the written approval according to the
"Approval Process" section of these Guidelines and Procedures, Vehicles owned or
leased by the University may not be used for personal purposes. Where in exceptional
circumstances such use is authorized, the following holds valid:

   •    The value of the personal use must be reported as a taxable benefit. Each
        Employee will be required to have a fixed amount of taxes withheld each pay in
        addition to regular taxes on salary for the personal use of the University Vehicle.
        The amounts which are determined by the Payroll and Budget Office will be
        deducted from the Employee's pay. Cancellation of these deductions due to a
        change in status and exclusion from an assigned vehicle may be accomplished by
        a written confirmation from the Dean or Director of the department/unit to the
        Payroll and Budget Department;
   •    The cost of gas and travel expenses, for personal use, are not to be charged to the
        University;
   •    The Operator should contact the Risk Management Department in order to
        determine the extend of coverage under the University's Automobile Policy with
        respect to personal use and his/her liabilities in case of an accident. If an
        unauthorized Operator is involved in an accident, he/she is fully responsible for
        all the damages.




Update May 12, 2004                                                              Page 3 of 9
AUTHORIZED VEHICLE/EQUIPMENT
Vehicle Selection
The make and model of a new vehicle will be recommended by Purchasing Services
taking into consideration the intended use of the vehicle, user's preferences as and where
appropriate, and availability of funds. The selection of a new vehicle must be according
to the following criteria: Unless otherwise expressly authorized in writing in accordance
with the "Approval Process" section of these Guidelines and Procedures, only North
American manufactured vehicles are permitted to be purchased or leased;

The selected options and equipment on a new vehicle must contribute to the functionality
and safety attributes of a vehicle. The University does not permit any equipment which is
considered "Cosmetic" as part of the University Vehicles. However, Employees who
have been allocated a Private Vehicle may, at their own expense, add "Employee Paid
Options" to a new vehicle. In this event, the Employee is required to submit a cheque,
payable to McGill University, in the amount as determined by Purchasing Services, with
the order requisition. The cheque will be cashed at the time the Operator receives the
vehicle. Such options become an integral part of the vehicle. The cost of such options
is non-refundable upon transfer, termination or disposal of the vehicle.

Color Selection
All vehicles owned or leased by the University (other than Private Vehicles expressly
authorized according to "Approval Process" section of these Guidelines and Procedures)
must be standardized in appearance as follows:
    • Exterior color of the vehicles shall be "White" (to standardize color, maximize
       resale value and to minimize paint refinishing costs relating to removal of the
       McGill University decals);
    • The name of the University, McGill insignia and the name of department
       (optional) to appear on the University vehicles must be according to Policy on
       Use of the Wordmark and Insignia of McGill University.

NEW VEHICLE
New vehicle Order Processing
Request for procurement of a new vehicle along with an approval in principle must be
submitted to Purchasing Services on the Preliminary Vehicle Acquisition Form. Upon
selection of a vehicle (i.e. make, model, and options), potential supplier and
determination of the final cost of the vehicle, a Banner Purchase Requisition must be
submitted to Purchasing Services for order placement.

New Vehicle Delivery
The dealer contacts the Fleet Coordinator when the vehicle is ready for delivery. The
dealer furnishes the Fleet Coordinator/Operator with all documents - such as registration,
license, owner’s manual and warranty book at the time of order delivery.

As required, the FSF driver’s manual including Fuel/Maintenance Credit Cards,
maintenance location guides and preventive maintenance schedule are forwarded to the
Fleet Coordinator prior to delivery of the new vehicle.


Update May 12, 2004                                                             Page 4 of 9
It is the responsibility of the Fleet Coordinator/Operator to ensure that:
     • He/she contacts the dealer to make arrangements for pick up;
     • He/she verifies that the vehicle is equipped exactly as specified. No extra
         equipment or costs are to be accepted without prior written consent from
         Purchasing Services.
     • He/she advises the Risk Management Department of the scheduled delivery date
         of the vehicle. Proof of insurance is mandatory prior to licensing.
     • He/she arranges for primary Operator to test drive and inspect the vehicle.
         Delivery of a vehicle with minor discrepancies may be accepted providing all
         discrepancies are stated on the delivery receipt and the dealer has made
         arrangements for correction;
     • In the event of major discrepancies (i.e. wrong colour, number of doors, etc.)
         he/she contacts the
     • Purchasing Services immediately, and refuses delivery;
     • He/she makes sure that license plates, all necessary ownership documents, the
         warranty and owners manual are received.

DISPOSAL OF OLD VEHICLE
Employee Purchase of a Used University Vehicle
Should there be any Employee interested in purchase of a used University Vehicle,
Purchasing Services will address the issue at the time of replacement or disposal.

Any purchase of a used University Vehicle must be at, as a minimum, the fair market
price as determined and offered to the University by independent third parties. University
Vehicles purchased by the Employees are subject to these conditions:
    • Purchase is "as is" and price is final;
    • Payment must be by certified or cashier's cheque as per instructions by
        Purchasing Services;
    • Cheque to be sent to the Purchasing Services with Employee's full name and
        home address, including the vehicle's last odometer reading;
    • Ownership papers will be made out in the name of the Employee;
    • The vehicle being purchased cannot be released until the replacement vehicle is
        delivered;
    • When the Employee receives the ownership papers, he/she must secure the
        appropriate insurance, register the vehicle and place ownership in his/her name.
        The University insurance and registration cannot be extended under any
        circumstance.

Disposal
If the vehicle is not sold to the University Employee, the Fleet Coordinator must notify
Purchasing Services of the location of the vehicle to be disposed of. Normally, the FMC
is notified by the delivering dealer that a used vehicle has been dropped off. The FMC
will make arrangements for pick up and disposal of the vehicle.




Update May 12, 2004                                                             Page 5 of 9
Used Vehicle Condition
Just prior to accepting delivery of a new vehicle, the primary Operator shall ensure that
all personal belongings are removed from the old vehicle. When vehicles are turned in,
the dealer accepting the old car will prepare a Used Car Condition Report which is
forwarded to the FMC. Fleet Coordinator/Operator must verify all conditions stated in the
report upon presentation by the dealer and sign only after the report is completed as
acknowledgement of the vehicle's actual condition.

Repairs Prior to Disposal
After a vehicle Replacement decision is confirmed with the FMC, no repairs are to be
made to the existing vehicle without the approval of Purchasing Services.

IMPORTANT: The University will make only urgent "safety related" repairs
immediately prior to disposition of any vehicle whether disposed of through the
FMC or by sale to an Employee.

PREVENTIVE MAINTENANCE, REPAIRS & WARRANTY
Maintenance Credit Cards
Each vehicle is assigned a Maintenance Credit Card issued by the FSF which is
acceptable at all National Account locations as listed in the FSF driver's manual. This
card may be used only for service or repairs on the assigned vehicle.

The Operator can take the University Vehicle to any National Account location for
service/repair.

Prior to the repair facility starting any repair work, the Maintenance Credit Card must be
presented to the service person. For all maintenance charges over $50.00, the service
person must call the FSF for an authorization before any work is performed on the
vehicle. The FSF will not honour any unauthorized maintenance work.

When the work has been completed, the work order must be reviewed by the Operator to
ensure that only the proper repairs were performed. If there are discrepancies, the work
order should not be signed. The FSF must be notified immediately and they will resolve
the situation directly with the repair facility. If the work and charges are correct, the
Operator signs the work order and retains a copy for records only. The FSF will remit
payment to repair facility upon receipt of the invoice and will charge back the University.

IMPORTANT: The FSF should be contacted immediately if any dealer or
independent shop does not recognize the FSF Maintenance Credit Card.

Preventive maintenance
Vehicles are to be serviced at regular intervals to insure that they are safe and operational.
Properly maintained vehicles will add to the safety of the Operator and any passenger and
will command maximum value at disposal time.




Update May 12, 2004                                                                 Page 6 of 9
Warranty Repairs
Warranty repairs can only be performed by an authorized manufacturer's dealership. The
Operator should exercise particular care to make sure that no charges are incurred for
those items that are covered by the warranty. However, if in doubt or when there is a
difference of opinion with the dealer in this matter, the Operator is recommended to
contact the FSF for assistance.

Tire Replacement
As tires wear out, they are to be replaced with equivalent tires (no upgrades). The
purchase of replacement tires must be authorized by the FSF. Odometer reading will be
taken into consideration when tire replacement arises but safety is the first concern.

Fuel Purchases
Each vehicle is assigned a Fuel Credit Card by the FSF which is accepted by the fuel
suppliers whose logos appear on the back of the Fuel Credit Card. This card allows the
Operator to use one credit card to purchase fuel requirements from any one of several
major petroleum service centers.

IMPORTANT:
The Fleet Coordinator/Operator must notify the FSF (Daniel Faucher from Purchasing
Services at 398-3540) immediately by fax if a Fuel/Maintenance Credit Card is lost or
stolen.

All Fuel/Maintenance Credit Cards issued to or held by University Employees must be
returned by them to the University's Purchasing Services when the vehicle is disposed of.
In the event of Employee termination, transfer or when authorization to use the vehicle is
withdrawn, the Credit Cards must be returned to the Fleet Coordinator of record.

Washing and Cleaning
It is expected that the Operator will keep the University Vehicle clean. The University
through its operating units accepts charges relating to car washes. Operators should
contact the Fleet Coordinator of their area for details.

SAFETY AND ACCIDENTS
Safety
It is the intent of the University to ensure that all University Vehicles are operated safely.
Each Employee who operates a University Vehicle must take responsibility for accident
prevention. Therefore, all Operators of University Vehicles are required to obey all traffic
safety rules and regulations and to conduct themselves in a responsible manner.

Accident Reporting
All accidents, including theft, vandalism etc., regardless of fault, must be reported to
the University Risk Management Department.
Accidents involving another vehicle in the Province of Quebec require a joint accident
report form to be completed on both sides and returned to the University Risk
Management Department as soon as possible. Accidents outside the Province of Quebec



Update May 12, 2004                                                                 Page 7 of 9
must be reported to the police. In all circumstances, the Operator is responsible for
obtaining the names, addresses and telephone numbers of owners, drivers, and witnesses.
In addition, the license plate number, make, model and year of the other vehicle must be
obtained as well as the name of the insurance company and policy number. Injuries or
deaths must be reported immediately to the police, and, as soon as practicable, to the Risk
Management Department .

All "hit-and-run" accidents require police notification prior to moving the vehicle. If the
vehicle is moved before the police are notified, the $250 deductible will be applied by the
University insurers when otherwise this type of collision is exempt from a deductible.

Following an accident, the Operator can have the vehicle towed to the nearest repair
facility if the vehicle is unsafe to drive. If the vehicle can be driven, the Operator will be
given further instructions once the Risk Management Department is notified of the
accident. All accident related repairs require authorization by the Risk Management
Department. Maintenance Credit Cards should not be used to pay for the accident
related repairs.

If a replacement is required while the University Vehicle is being repaired, the Operator
must contact the Risk Management Department for coverage information and eligibility.

The FSF will assist the Operator with any towing problems, windshield replacements and
short term rental requirements once the Risk Management Department has been advised.
Deductibles will be applied in all cases.

INSURANCE
As of June 1, 2002 all new University Vehicles must be equipped with the Boomerang
Tracking System to be automatically insured upon delivery under a blanket automobile
policy with McGill University as the policy holder. However, all vehicle
additions/substitutions/deletions must be reported to the Risk Management
Department by the Fleet Coordinator prior to delivery of the vehicle to ensure that
proper documentation is made available to meet licensing requirements.

Take note that for the Boomerang Tracking System, there will be an installation cost and
a monthly fee to be paid by the department requesting a new vehicle.

A valid Insurance Certificate is distributed to Fleet Coordinators of record annually by
the Risk Management Department which advises Operators of the name of University
insurance carrier, the insurance policy number and the related procedures. Fleet
Coordinators are responsible to request Insurance Certificates for new vehicles by
contacting the Risk Management Department. The completion of an Automobile
Insurance Form (Appendix A - Sample V) will be requested by the Risk Management
Department at that time.

You are requested to contact the Risk Management Department directly for a summary of
the insurance coverage in force, including applicable deductibles, and territorial limits.



Update May 12, 2004                                                                 Page 8 of 9
FURTHER INFORMATION
Inoperable Vehicle
If the University Vehicle is inoperable, the Operator has the option to:
        Arrange with the repair facility for a replacement vehicle; or
        Use his/her personal vehicle and charge the University according to the
        University policy on "Travel and Other Personal Reimbursements"; or
        Rent a vehicle from one of the rental agencies suggested by the FSF.

Traffic Violations
No Employee shall operate a company vehicle while impaired by intoxicating liquor
and/or narcotic drugs. If an Operator is convicted of Driving Under the Influence or
Driving while Intoxicated and is involved in an accident, the Employee, in addition to
paying court costs, will be responsible for the cost of repairing the vehicle and will also
be fully responsible for all damages in a third party liability claim. The cost of traffic
violations, or any other resulting fines and related fees, is the responsibility of the
Operator of record at the time of the infraction and must be paid immediately by the
Operator.

License Plates and Registration
The initial registration and licensing associated with each new vehicle delivery is
included in the total billing. Operators are not to pay out any funds or attempt to register
new vehicles directly.

The University Fleet Coordinators are responsible for renewing vehicle registrations and
license plates on an annual basis.

International Travel
Under no circumstances will the University Vehicle be permitted to enter Mexico. The
University Automobile Insurance policy does not provide coverage for side trips or
vacations into Mexico.

Employee Termination/Transfer
If termination of employment occurs, the Operator of a University Vehicle (Private and
Non-Dedicated Vehicle) must turn in the vehicle, keys, Fuel/Maintenance Credit Cards
and all related documents, on the last day of regular employment with the University to
the Fleet Coordinator. Extensions are not allowed.

For all employee transfers, the Vehicle remains with the department unless otherwise
approved by the Dean or Director of the area.

Vehicle Related Documents and Key
All vehicles related documents (Vehicle Registration, Insurance Certificate, and
Fuel/Maintenance Credit Cards) and the key are to be kept together. The key and
documents must never be left in a non-attended vehicle.




Update May 12, 2004                                                               Page 9 of 9

				
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