Procedure Council Motor Vehicle Leaseback by alicejenny

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									                                       KEMPSEY SHIRE COUNCIL


COUNCIL MOTOR VEHICLE LEASEBACK                                             Procedure 5.5.29


Policy No. and title             5.5          Conditions of Employment Policy
Procedure                        5.5.29       Council Motor Vehicle Leaseback
Version                          1
Date Adopted                     25 July 2012



INTRODUCTION

Kempsey Shire Council recognises that it will be required to purchase and maintain an
extensive vehicle fleet for the provision of services to the community. Council is committed
to maintaining its vehicle fleet in an economically, socially and environmentally responsible
manner.

Council is also committed to achieving its long term vision to become an ‘Employer of
Choice’ and recognises that the modern labour market is highly competitive and that, in
order to attract and retain skilled staff in key positions, Council must provide a range of
appropriate incentives.

The Motor Vehicle Leaseback Procedure is intended to address these issues by establishing
standards and guidelines for the provision of private use of motor vehicles to staff members
under a leaseback arrangement.

1        OBJECTIVES

         •     To assist Council to meet its strategic objective to become an ‘Employer of
               Choice’.

         •     To enable Council to remain competitive with other employers in attracting and
               retaining skilled staff.

         •     To enable Council to provide employees with a valuable benefit while at the
               same time providing some income to offset the cost of maintaining Council’s
               vehicle fleet.

         •     To provide clear and consistent guidelines for the efficient and effective
               operation of Council’s Motor Vehicle Leaseback scheme.

2        OWNERSHIP AND AVAILABILITY

         2.1     As a basic premise, vehicles are to facilitate delivery of Council services and
                 shall be available as a first priority at all times for this purpose. For those
                 employees who are in charge of a vehicle and are permitted private use, the
                 following conditions strictly apply.

                 Council vehicles will be available as pool vehicles even though private use
                 leaseback may apply. This means that whilst a staff member who has been
                 allocated a vehicle, while at work on a regular week day, the vehicle must be
                 available for use by them or other staff for business purposes. Council
                 requirements take first priority during the employees normal working hours
                 with the exception of the leave periods described in clause 7.3.




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         2.2    The vehicle must be kept clean and presentable at all times by the employee.

                The transport of animals in council vehicles whilst not encouraged should be
                kept to a minimum and all efforts must be made to protect the vehicle
                upholstery and carpet.

                If the vehicle is presented at vehicle changeover time in an unsatisfactory
                condition, the employee will be required to pay the costs of having the
                vehicle cleaned or repaired.

         2.3    The Council will provide for repairs, maintenance and insurance of the vehicle
                and NRMA/Holden wise or similar membership.

         2.4    When at the employee’s residence, the car must be parked off-street and
                preferably under cover, unless otherwise approved by the Coordinator Fleet
                and Procurement.

         2.5    The Council vehicle must not be used in any car rally or competition.

         2.6    No modifications are to be made or equipment added to or removed from the
                vehicle without the prior approval of the Coordinator Fleet and Procurement.

         2.7    Smoking is not permitted under any circumstances in Council vehicles at
                anytime. This includes passengers. Non compliance of this will lead to a
                breach of Council’s leaseback agreement, which will lead to termination of the
                agreement.

3        FUEL

         3.1    Vehicles are assigned a Fuel Card for the purchase of fuel. The fuel card shall
                be used at all times when fuelling Council’s vehicles at any service station
                (preferably Shell service stations), which accepts the issued fuel card.
                Employees are requested to fuel vehicles to a full tank each time the card is
                used. The speedometer reading is to be given to the service station operator
                at the time of fuelling. This practice is preferable as it assists in vehicle
                management. Consistent failure to use fuel cards or record speedometer
                readings will be deemed a breach of Council’s leaseback agreement, which
                will lead to termination of the agreement.

         3.2    The fuel card shall only be used for the purchase of fuel, oil or other fluids for
                council vehicles. No other purchases using the fuel card are permitted. The
                use of the fuel card for obtaining bonus points (ie fly buy points) is prohibited
                as a fringe tax liability is incurred.

         3.3    Fuel cards must be returned to the Fleet section upon termination of
                employment. Lost cards must be reported immediately to the Fleet section
                who will facilitate cancellation of the card.

         3.4    The cost of fuel while leaseback participants use the vehicle for private travel
                will be met as follows:

                3.4.1   Fuel purchased within New South Wales - cost met by Council.

                3.4.2   Fuel purchased outside New South Wales will be met by the leaseback
                        participant.




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4        LEASEBACK VEHICLE CATEGORIES

         Council will provide eligible employees with the option to participate in the leaseback
         and private use of a motor vehicle in accordance with the following categories.

         4.1    Category 1

                This category applies to the General Manager and Directors, who will be
                provided with the option of a leaseback vehicle in accordance with this Policy
                and Council’s Motor Vehicle Leaseback or Commuter Use Agreement.

                Employees in this category will have the option of a sedan, hatchback,
                wagon, 4WD or 2WD SUV. The purchase price must not exceed 30% of the
                total remuneration package.

         4.2    Category 2

                This category applies to managers and professional/specialist staff employed
                under Band 3 or Band 4 of the Local Government (State) Award, where the
                vehicle is provided as a condition of employment and was negotiated as part
                of the remuneration package for the position, either at the time of
                employment or a later date.

                The General Manager will determine what positions attract a leaseback motor
                vehicle in this category, taking into account labour market forces, skills
                shortages, inability to fill critical positions and other relevant factors.

                Council will provide a sedan, hatchback, wagon, 4WD or 2WD SUV that will
                meet the operational requirements of Council.

         4.3    Category 3

                This category applies to employees who require the use of a vehicle for
                operational purposes on a continuous daily basis during work hours, as an
                integral part of the position they occupy. In such cases, the leaseback
                agreement is offered as a discretionary benefit that is not a condition of
                employment.

                The relevant Director will determine what employees will have the option of a
                leaseback vehicle in this category.

                Employees in this category will have the option of leasing the vehicle that has
                been purchased to carry out the operational requirements of Council.

         4.4    Standard of Vehicles

                The standard of vehicle to be allocated shall be at the discretion of the
                General Manager or their delegate and will fall into the following categories:

                1      Class 1 Vehicles:

                       a)    A vehicle of 4 cylinders less than 2.5 litres – Executive Range or
                             lower.

                2      Class 2 Vehicles:




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                       a)    A vehicle of 4 cylinders AWD/2WD SUV wagon – Executive
                             Range or lower

               3       Class 3 Vehicles:

                       a)   Vehicles which are negotiated with the individual or included in
                            their contract of employment and are not considered Class 1 or
                            Class 2 vehicles. E.g. a vehicle with a seating capacity of greater
                            than 5 people or 4WD.

               4       Class 4 Vehicles:

                       a)   Vehicles which are negotiated with the individual that exceed the
                            operational requirements of Council.

5        VEHICLE EXTRAS

         5.1   The employee’s Director must approve any extras fitted to the vehicle. Extras
               that limit flexibility in managing the fleet to ensure lowest ownership cost will
               not ordinarily be fitted.

         5.2   All vehicles provided under Leaseback will be fitted with the following
               standard accessories, where available:

                   •   Floor mats (front and rear)
                   •   Mudflaps (front and rear)
                   •   Seat covers
                   •   Air conditioning
                   •   Anti-lock braking system (ABS)
                   •   Cruise Control
                   •   Metallic or pearl paint (White or Silver)

               Council may fit additional accessories if they are required for safety or
               operational reasons.

         5.3   Accessories other than standard vehicle inclusions may be considered,
               however the employee will need to demonstrate the need for any accessory
               to their manager prior to requesting approval for the accessory. Non-
               standard accessories approved to be fitted to the vehicle will be at the
               employee’s expense for the initial purchase. Council will bear the cost of the
               accessory on any subsequent vehicle allocated to that employee. No
               accessory is to be fitted to the vehicle without the consent of the Coordinator
               Fleet and Procurement.

               Non-standard accessories include:

                   •   Tow bars
                   •   Roof racks
                   •   Items not specified in 5.2.

6        CHANGEOVER TIME

         6.1   The Coordinator Fleet and Procurement will decide changeover time based on
               proper assessment of the following:

                   •   Market conditions
                   •   Model release dates
                   •   Warranty conditions
                   •   Local market conditions



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                  •    Capital and whole of life costs
                  •    Government contract requirements
                  •    Government tax arrangements.




7        CONDITIONS

         7.1   The vehicle may only be driven by the following people:

               7.1.1    An employee of Council holding an appropriate current Driver’s
                        Licence.

               7.1.2    The spouse/partner of the employee named in the Agreement.

               7.1.3    The children of the employee named in the Agreement, provided that
                        children under the age of 25 are accompanied at all times by the
                        employee or his/her spouse.

               7.1.4    Any holder of an appropriate current         drivers   licence   when
                        accompanied by the Council employee.

               7.1.5    In emergency circumstances, any licensed driver authorised by the
                        Council employee.

         7.2   Should the employee authorise a driver under 25 years of age other than
               another Council employee, to drive the vehicle and the vehicle is involved in
               an accident then the employee shall pay to Council any excess not met by
               the Council’s insurance company due to the driver’s age within 30 days of
               receiving an invoice from Council.

         7.3   The maximum period for which a vehicle can be used by an employee on
               annual or long-service leave is nine (9) consecutive weeks. Family leave, sick
               leave or workers compensation absences of two (2) consecutive weeks or
               more are at the discretion of the relevant Director who may approve an
               extended period provided the vehicle is not required for Council purposes
               during the absence of the employee concerned.

         7.4   Leaseback drivers will be given one months notice of intention to replace
               their current vehicle. A list of available vehicles, lease back rates and
               anticipated delivery time will be supplied with this notice.

         7.5   If a driver is convicted of driving under the influence of alcohol or other
               banned drug or substance resulting from an accident involving a Council
               vehicle the leaseback holder must pay the total cost of repairs and/or
               restitution arising out of the accident, in the event that Council’s insurers
               deny any insurance claim within 30 days of receiving an invoice from Council.

         7.6   The vehicle shall not be used for any commercial purpose or in any activity
               where the lessee derives an income which is not related to the lessee’s
               employment with the Council.

         7.7   Council is to provide comprehensive insurance cover for the vehicle whilst the
               vehicle is used for either business or private use.

         7.8   The insurance policy does not provide cover for the loss of personal
               possessions or equipment that are damaged, lost or stolen from the Council




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                vehicle. The cost of any loss or damage to personal property from the vehicle
                is to be borne by the employee.

         7.9    A leaseback driver involved in more than one at fault accident per year,
                subject to an investigation, may be required to pay the insurance excess
                applicable within 30 days of receiving an invoice from Council.


8        LEASEBACK CONTRIBUTION RATES

         8.1    The leaseback contribution payment for full private use (category 2 and 3) of
                a vehicle is in accordance with the following schedule.

                            Class   1   Vehicles    $69.95 per week
                            Class   2   Vehicles    $93.25 per week
                            Class   3   Vehicles    $110.75 per week
                            Class   4   Vehicles    Rate charged will include all additional
                                                    costs of operating the vehicle as
                                                    determined by the Coordinator Fleet and
                                                    Procurement.

                The leaseback contribution payment for full private use (category 1) of a
                vehicle is in accordance with the signed total remuneration package of the
                General Manager or Director.

                Staff may salary sacrifice to pay a portion of this weekly lease fee subject to
                Award and ATO limitations. Staff should see the Coordinator Fleet and
                Procurement about this option.

         8.2    The leaseback contribution will be reviewed annually by the General Manager
                and may be increased on 1 April each year, at the discretion of the General
                Manager. Employees with a leaseback arrangement will be given at least two
                (2) months’ notice of any payment variation.

                In accordance with the Local Government (State) Award 2010, such increase
                in any one (1) year shall not be more than ten (10) percent or the
                percentage movement on the index figure published by the Australian
                Bureau of Statistics for Eight Capitals, private motoring sub-group (Cat No
                6401.0), whichever is the greater.

9        FRINGE BENEFIT TAX

         9.1    Employees will pay any Fringe Benefits Tax (FBT) liability that might arise
                from the private use of vehicles provided under this Agreement where any
                salary sacrifice amount has been made.

         9.2    It is in Council’s and employee’s interests that the annualised kilometres
                travelled by a vehicle allows the application of the lowest possible statutory
                fringe benefits tax percentage rate. In order to optimise the distance
                travelled by all vehicles some staff may be requested to use alternate
                vehicles for a period of time to minimise the fringe benefits tax payable.

10       TERMINATION

         10.1    Non-compliance with the terms and conditions of this agreement may
                 preclude the employee from further use of the vehicle.




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         10.2    Abuse or misuse of the vehicle or Fuel Card will lead to disciplinary action
                 being taken which may include the termination of the leaseback agreement
                 on one days notice.

         10.3    The employee may terminate this agreement by giving two weeks written
                 notice to the Coordinator Fleet and Procurement.

         10.4    Council may terminate this agreement by giving 12 months written notice of
                 its intention to do so in accordance with the Local Government (State)
                 Award. Any decision to terminate this agreement must be made in
                 consultation with the relevant union.



11       LOG BOOKS

         11.1    Employees will not be required to maintain log books on a permanent basis.
                 The Manager Finance may require employees to prepare log books for a
                 maximum period of 13 weeks annually in order to monitor the proportions
                 of business and private use.

         11.2    Should log books be required for Fringe Benefits Tax or any other legislated
                 purpose they will be implemented so as to comply with the relevant
                 legislation.

12       VEHICLE LEASEBACK TERMS AND CONDITIONS

         12.1    Employees who accept private use of a vehicle under a leaseback
                 agreement must sign a copy of Council’s Motor Vehicle Leaseback or
                 Commuter Use Agreement Terms and Conditions before private use is
                 granted. See Appendix 1.

13       VARIATION

         The Council reserves the right to vary the terms and conditions of this Agreement
         subject to two (2) months written notice to the employee. In accordance with the
         Local Government (State) Award, such variations will be referred to the JSCC.




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         MOTOR VEHICLE
   LEASEBACK OR COMMUTER USE
           AGREEMENT

                   and

           TERMS AND CONDITIONS




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                                                       Contents


1     OWNERSHIP OF MOTOR VEHICLE .............................................................................. 3

2     VEHICLE TYPES AND ALLOCATION ............................................................................ 3

3     VEHICLE USE ............................................................................................................. 3

4     VEHICLE AVAILABILITY DURING PERIODS OF LEAVE ............................................... 4

      Annual and Long Service Leave ...................................................................................... 4

      Parental Leave ............................................................................................................. 4

      Sick Leave, Carer’s Leave and Workers Compensation Absences ........................................ 4

5     AUTHORISED DRIVERS.............................................................................................. 4

6     LEASEBACK CONTRIBUTION PAYMENTS .................................................................... 5

      Review of Leaseback Contribution Payments .................................................................... 5

      Payment of Leaseback Contributions by Payroll Deduction ................................................. 5

7     NON STANDARD VEHICLE ACCESSORIES ................................................................... 5

      Tow Bars and Roof Racks .............................................................................................. 5

      Other Accessories......................................................................................................... 6

8     PETROL AND OTHER CONSUMABLES.......................................................................... 6

9     VEHICLE LOG BOOKS ................................................................................................. 6

10    EMPLOYEE RESPONSIBILITIES .................................................................................. 6

11    BREAKDOWNS AND REPAIRS ..................................................................................... 7

12    ACCIDENTS ................................................................................................................ 7

13    TRAFFIC AND PARKING INFRINGEMENTS .................................................................. 7

14    THE COUNCIL’S RESPONSIBILITIES........................................................................... 8

15    MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT .................................. 8

16    TERMINATION ........................................................................................................... 8

      Termination by the Council ............................................................................................ 8

      Termination by the Employee ........................................................................................ 8

      Employee’s Obligations on Termination ........................................................................... 9

17    VARIATION ................................................................................................................ 9



MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT – SCHEDULE A................... 10




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    MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT


Agreement made this date _______________ between the Kempsey Shire Council
(hereinafter referred to as “the Council”) of the one part and ________________________
(hereinafter referred to as “the employee”) of the other part.

Council is the owner of the motor vehicle to which this Agreement applies and has
determined that the employee may have private use or commuter use of this
vehicle. The use of the vehicle shall be subject to the following terms and
conditions:


1     OWNERSHIP OF MOTOR VEHICLE

      The employee acknowledges that the motor vehicle is the property of Kempsey
      Shire Council.


2     VEHICLE TYPES AND ALLOCATION

      The Council reserves the right to operate its vehicle fleet in the most cost effective
      manner including the rotation of vehicles and, depending on prevailing market
      conditions, may decide to reduce or extend the holding period and/or vary the type
      of vehicles purchased and allocated at any time. Vehicles will be replaced at the
      optimum replacement interval as determined by the Council.

      Subject to specific operational requirements, vehicles will be provided under this
      Agreement in accordance with Council’s Motor Vehicle Leaseback Procedure and will
      generally be automatic sedans, hatchbacks, wagons, light four wheel drives or two
      wheel drive sports utility vehicles.


3     VEHICLE USE

      The vehicle allocated under this Agreement is to be used in a lawful and responsible
      manner for normal personal and private use or commuter use, in accordance with
      the vehicle’s design parameters. The employee is not to use the vehicle for:

      •   Any unlawful purpose.

      •   Conducting any private business or commercial activities or any other activity
          for personal reward or gain.

      •   Carrying passengers in excess of that for which the vehicle in constructed,
          registered or licenced, or contrary to manufacturer’s recommendations.

      •   Carrying, hauling or towing loads in excess of that for which the vehicle is
          constructed, registered or licenced, or contrary to manufacturer’s
          recommendations.

      •   Participation or involvement in any race, speed testing or speed trial, reliability
          trial, stunt, rally or other motor sport activity or event.

      •   Any activity that jeopardises the vehicle’s structural or mechanical integrity.

      The vehicle will form part of the Council’s car pool and be available for the Council’s
      use during normal working hours except for periods of approved leave or the



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      employee’s rostered day off. The vehicle may be used by any member of staff
      holding an appropriate licence.

4     VEHICLE AVAILABILITY DURING PERIODS OF LEAVE

      Where the employee is absent on approved leave in excess of one (1) week and
      does not require private use of the vehicle, the vehicle shall be returned to the
      appropriate vehicle pool and be made available for general use.

           Annual and Long Service Leave

           The maximum total period for which the vehicle can be used while on leave is
           nine (9) weeks in any calendar year. Any greater period shall be subject to
           approval by the Council’s General Manager.

           Parental Leave

           The maximum period the vehicle may be used is nine (9) weeks, in line with
           Award paid parental leave provisions.

           Sick Leave, Carer’s Leave and Workers Compensation Absences

           The maximum period for which the vehicle may be used while on extended
           sick/carer’s leave or absences under workers compensation is two (2) weeks.
           Any greater period shall be subject to review by Council’s relevant Director,
           who may require the employee to return the vehicle to the appropriate vehicle
           pool for general use.

      Leaseback payments during any leave period that the employee does not have
      private use of the vehicle will be suspended until private use resumes.

      Vehicles provided for commuter use are not available for use during periods of an
      employee’s leave.


5     AUTHORISED DRIVERS

      Category 1, 2 and 3 vehicles may only be driven by licenced drivers (including
      provisional licence holders) who fall within one of the following categories:

      •   The employee named in this Agreement or his/her spouse (married or de-facto,
          including same sex relationships).

      •   The children of the employee named in this Agreement, provided that children
          under the age of 25 are accompanied at all times by the employee or his/her
          spouse.

      •   Other licensed drivers, provided they are accompanied at all times by the
          employee.

      •   An officer or councillor of Kempsey Shire Council.

      •   Other persons in instances where the Council’s General Manager has specifically
          permitted such use.

      The employee’s children are also permitted to drive the vehicle as learner drivers,
      provided they hold the appropriate learners permit and are accompanied at all times
      by the employee or his/her spouse in accordance with applicable driving laws.




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      In the event of an emergency, the vehicle may be driven by a licenced driver
      without prior authorisation and without the employee as a passenger. The employee
      shall advise the Council’s relevant Director in writing as soon as possible after an
      event of this type or, if the employee is a Director, the Council’s General Manager.

      Category 4 vehicles must only be driven by an employee of Council who holds an
      appropriate current Drivers Licence. In the event of an emergency the vehicle may
      be driven by any licenced driver.


6     LEASEBACK CONTRIBUTION PAYMENTS

      •   The leaseback contribution payment for full private use of the vehicle is detailed
          in part 8.1 of the Council Motor Vehicle Leaseback Procedure.

      •   The commuter use contribution payment for commuter use only (to and from
          work) is detailed in part 6.1 of the Council Motor Vehicle Commuter Use (Home
          Garaging) Procedure.

      Review of Leaseback Contribution Payments

      The leaseback and commuter use contribution will be reviewed annually by the
      Council’s General Manager and may be increased on 1 July each year, at the
      discretion of the General Manager. The employee will be given at least two (2)
      months’ notice of any payment variation.

      In accordance with the Local Government (State) Award 2010, such increase in any
      one (1) year shall not be more than ten (10) percent or the percentage movement
      on the index figure published by the Australian Bureau of Statistics for Eight
      Capitals, private motoring sub-group (Cat No 6401.0), whichever is the greater.

      Payment of Leaseback Contributions by Payroll Deduction

      Leaseback or commuter use contribution payments are payable weekly by payroll
      deduction from the employee’s pay.


7     NON STANDARD VEHICLE ACCESSORIES

      The vehicle shall not be modified in any way by the employee. All requests for
      vehicle modifications must be made via the Council’s relevant departmental
      Director.

      Tow Bars and Roof Racks

      Where required by the employee, the Council will supply and fit a tow bar and/or
      roof rack. The employee will pay for the full cost of purchasing and fitting the first
      tow bar/roof rack within 30 days of receiving an invoice from Council. The employee
      is responsible for paying for the first towbar/roof rack regardless of whether or not
      the leaseback agreement continues.

      Tow bars and roof racks purchased and fitted in this manner will remain with the
      vehicle when it is sold or otherwise disposed of. The Council will pay for the
      purchase and fitting of any subsequent tow bars/roof racks required by the
      employee.




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      Other Accessories

      Fitment of accessories apart from tow bars and roof racks will be approved on a case
      by case basis. If approved, the employee must provide the accessory and pay any
      costs of fitting the accessory upfront. The accessory will remain the property of the
      employee.

      The cost of removal and installation on new vehicles will be the responsibility of the
      employee, as will the costs of any repairs to the vehicle resulting from the use of the
      accessory. These costs will be paid in full as incurred.

8     PETROL AND OTHER CONSUMABLES

      Petrol and other consumable items shall be provided by the Council where
      purchased in New South Wales. All fuel purchases are to be made using the Council
      issued fuel card, except where exceptional circumstances prevent the use of the
      card. Fuel purchased outside New South Wales will be met by the employee.

      Receipts from any purchase of petrol or other consumable item are to be retained by
      the employee and submitted to the Council’s Finance Section as required.


9     VEHICLE LOG BOOKS

      If required, the employee will complete a vehicle log book as provided by the Council
      and submit a declaration detailing the number of private kilometres driven during
      the reporting period, usually three monthly.


10    EMPLOYEE RESPONSIBILITIES

      The employee is responsible for:

      •   Complying with all relevant road rules and laws.

      •   Regularly cleaning the vehicle.

      •   Ensuring regular checking of engine oil, engine coolant and tyre pressures.

      •   Ensuring services are completed as per manufacturers’ recommendations.

      •   Reporting any defects or damage to the vehicle to the Coordinator Fleet and
          Procurement.

      •   Complying with the Council’s Smoke Free Workplace Policy by not smoking in
          the vehicle or allowing others to smoke in the vehicle.

      •   Garaging the vehicle in a secure off street location (if possible under cover).

      •   Locking the vehicle when not in use and removing or concealing any equipment
          that may attract the attention of thieves.

      •   Returning the vehicle to the appropriate vehicle pool if leave periods set out in
          Clause 4 (Vehicle Availability During Periods of Leave) of this Agreement are
          exceeded.

      •   Recording private and business use in log books during all periods of vehicle
          operation, as required.


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      •   The reimbursement to Council of any fringe benefit tax liability that might arise
          from the use of a Council motor vehicle under this Agreement.

      •   Ensuring that only persons permitted to drive the vehicle, as set out in Clause 5
          (Authorised Drivers) of this Agreement are allowed to drive the vehicle.

      •   Not driving under the influence of alcohol or drugs, or without a current driver’s
          licence.

      Breaches of the above conditions may result in the immediate termination or
      suspension of the employee’s Motor Vehicle Leaseback or Commuter Use
      Agreement.


11    BREAKDOWNS AND REPAIRS

      In the event of a breakdown, the employee is to utilise the services of the vehicle’s
      NRMA Roadside Assistance Program.

      Should the breakdown occur in a location away from the Council area, the employee
      may arrange urgent repairs. Reimbursement will be made to the employee, upon
      production of receipts.

      The Council will charge the cost of repairs to the employee if such repairs are the
      result of wilful negligence, carelessness of the employee, or from using the vehicle
      in a manner that is contrary to this Agreement.


12    ACCIDENTS

      In the event of an accident, the employee must contact the Coordinator of Fleet and
      Procurement as soon as possible following the accident and complete a Motor
      Vehicle Insurance Claim form.

      Excess payable on insurance claims will be paid for by the Council except where the
      damage has been caused by wilful negligence, carelessness or the employee, or
      from using the vehicle in a manner that is contrary to this Agreement and Council’s
      Motor Vehicle Leaseback Procedure, in which case the employee will be responsible
      for payment of any insurance excess.


13    TRAFFIC AND PARKING INFRINGEMENTS

      The employee will be responsible for full payment of the fine if he or she is fined for
      infringing any traffic or parking rule or law.

      If the employee is convicted of driving under the influence of any drug or
      intoxicating liquor, he or she will be personally liable/responsible for any loss or
      damage to the Council’s or any third party’s property arising from driving under the
      influence. This would include payment of any claim for damage, injury or fine
      resulting from litigation.

      If the employee has his or her driving licence suspended or cancelled for a breach of
      any road rules or laws, the employee will automatically have the Motor Vehicle
      Leaseback or Commuter Use Agreement suspended. On regaining a licence, the
      employee may apply for reinstatement of his or her Motor Vehicle Leaseback or
      Commuter Use Agreement.




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14    THE COUNCIL’S RESPONSIBILITIES

      The Council shall be responsible for the cost of all repairs, servicing, maintenance,
      registration and insurance of the vehicle, except where such maintenance and
      repairs occur as a result of the employee breaching any part of this Agreement.


15    MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT

      Schedule A to the Motor Vehicle Leaseback or Commuter Use Agreement must be
      accepted and signed by the employee and signed by the Council’s relevant Director
      or General Manager before any leaseback arrangement takes effect.


16    TERMINATION

      Termination by the Council

      a)   The Motor Vehicle Leaseback or Commuter Use Agreement may be terminated
           by agreement at any time.

      b)   Where a vehicle is provided to an employee as a condition of employment the
           arrangement may only be terminated by agreement. (Leaseback Categories 1
           and 2).

      c)   Where a vehicle is provided to an employee as a discretionary benefit the
           arrangement Council shall give a minimum of six (6) months written notice of
           the arrangement (Leaseback Category 3 and 4).

           Notwithstanding the above where the leaseback vehicle agreement was
           entered into prior to 1 November 2010, the Council shall give a minimum of 12
           months notice to terminate the agreement.

           Notwithstanding the above where a commuter use agreement was entered into
           prior to 3 November 2011, the Council shall recognise the agreement as a
           term or condition of employment.

      d)   Should the employee cease employment with the Council, lose his or her
           licence, seriously breach this Agreement, or accept a new position with the
           Council that does not include a leaseback vehicle, the Council may terminate
           or suspend the Motor Vehicle Leaseback or Commuter Use Agreement without
           notice.

      e)   Where the vehicle is provided on a temporary basis the agreement may be
           terminated by the Council without further notice at the end of the agreed
           leaseback period.

      Termination by the Employee

      Where a vehicle is provided to the employee under Category 1 or Category 2 of the
      Council’s Motor Vehicle Leaseback Procedure, the Motor Vehicle Leaseback or
      Commuter Use Agreement may be terminated by the employee with four weeks
      written notice.

      Where a vehicle is provided to the employee under Category 3 or Category 4 of the
      Council’s Motor Vehicle Leaseback Procedure or Council Motor Vehicle Commuter Use
      (Home Garaging) Procedure, the Motor Vehicle Leaseback or Commuter Use
      Agreement may be terminated by the employee by giving two weeks written notice.




5.5.29/5.5.63                                                                  Page 8 of 10
      Employee’s Obligations on Termination

      Upon termination of the Motor Vehicle Leaseback or Commuter Use Agreement, the
      vehicle, keys and any other associated items included with the vehicle shall be
      returned to the Council prior to or on the date of termination.

      All expenses and obligations arising from the Motor Vehicle Leaseback or Commuter
      Use Agreement shall be paid by the employee prior to termination or deducted by
      the Council from the employee’s final pay.


17    VARIATION

      The Council reserves the right to vary the terms and conditions of this Agreement
      subject to two (2) months written notice to the employee. In accordance with the
      Local Government (State) Award, such variations will be referred to the JSCC.




5.5.29/5.5.63                                                              Page 9 of 10
      MOTOR VEHICLE LEASEBACK OR COMMUTER USE AGREEMENT – SCHEDULE A

  This Schedule replaces and supersedes any previous Schedule. The Schedule will be
  amended over the life of the Agreement in accordance with Clause 6 and Clause 17.


Part A: Term of Agreement (tick appropriate box)

 This schedule operates from ______________ (insert date) and remains in force unless terminated or varied in
   accordance with Clause 16 or Clause 17 of the Agreement.

 The right to private use of a Council vehicle is temporary and only applies for a period of ____________ weeks
   from _________________ to _________________ inclusive.


Part B: Vehicle Details

The vehicle is provided under the following Leaseback Vehicle Category as set out in Council’s Motor Vehicle Leaseback
Procedure or Council Motor Vehicle Commuter (home garaging) Procedure. (Tick box as appropriate)

Vehicle Category:            Category 1           Category 2            Category 3             Category 4
Description of Vehicle:

The Vehicle will be parked off street at:


Part C: Accessory Details

Accessories to be fitted at the employee’s expense (Clause 7):

Tow Bar                    YES                    NO
Roof Rack:                 YES                    NO
Other:                     YES                    NO      Specify:


Part D: Contribution Details

Contribution Payments to be Applied (Clause 6):

Full Private Use (Leaseback Vehicle Class 1)                                               $69.95 per week

Full Private Use (Leaseback Vehicle Class 2)                                               $93.25 per week

Full Private Use (Leaseback Vehicle Class 3)                                            $110.75 per week

Full Private Use (Leaseback Vehicle Class 4)                                            $        per week

Commuter Use Only (Vehicle Category 4)                                                  $        per week


Part E: Authorisation

I, _________________________________ (name) hereby acknowledge that I have read, understand and accept
the terms and conditions of Kempsey Shire Council’s Motor Vehicle Leaseback Procedure/Council Motor
Vehicle Commuter Use (Home Garaging) Procedure and Motor Vehicle Leaseback or Commuter Use
Agreement.
I authorise payroll deductions of $__________ per week to pay my vehicle leaseback contributions in accordance
with the terms and conditions in the Agreement, commencing _____________ (date). I further authorise the Council
to deduct any money owed by me under this Agreement from my final pay, in the event that this Agreement ceases
as a result of the termination of my employment.
I acknowledge that this Agreement is provided under Leaseback Vehicle Category 3 in Council’s Motor Vehicle
Leaseback Procedure or Category 4 in Councils Motor Vehicle Commuter Use (Home Garaging) Procedure and as such
does not constitute a condition of my employment as defined by the Local Government (State) Award. (Delete this
paragraph if not applicable)

Employee Signature:                                                                 Date:

General Manager/Directors Signature:                                                Date:




  5.5.29/5.5.63                                                                                    Page 10 of 10

								
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