Vehicle Policy Version 2 January 28, 2014

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1 Vehicle Policy Version 2 January 28, 2014

2 Contents Record of Updates Background Types of Transportation Usage Public Transportation Privately Owned Vehicles Authorization Reimbursement Insurance and Registration Company Vehicles Authorization Driver Responsibility Insurance and Registration Accidents, Vandalism, Other Losses, and Reporting Logbooks Maintenance and Service Accessibility of Company Vehicles Motor Vehicle Acquisitions Motor Vehicle Disposal Rental Vehicles...6 Appendix One...7 Appendix Two...8 Version 2 January 28, 2014 Page 1

3 Record of Updates Version Date Summary of Update 1 March 9, 2011 Original 2 January 28, 2014 Reviewed and approved Version 2 January 28, 2014 Page 2

4 1. Background Company operations require employees to travel in order to carry out the responsibilities of their positions. There is the need to ensure those who are required to travel in order to conduct company business use the most appropriate and cost-effective mode of transportation available. 2. Types of Transportation Common types of transportation include public transportation, privately owned vehicles, company owned or leased vehicles and rental vehicles. 3. Usage Any employee that is required to travel in order to perform company business must first have signed the employee travel agreement. (See Appendix One) Employees that are required to travel for company business are: Management team Investigators Accounting personnel. Employees who are required to travel to the same business function should travel as a group in the same vehicle whenever possible. However, it is not desirable from a risk assessment perspective to have all Executive together in one vehicle. 4. Public Transportation Public transportation includes buses, taxicabs, trains, boats, and aircraft. 5. Privately Owned Vehicles 5.1 Authorization The employee must obtain approval from their manager before using their privately owned vehicle for company business. 5.2 Reimbursement AMVIC employees are reimbursed for mileage costs for privately owned vehicles when used for company business in accordance with the travel expense reimbursement guide. 5.3 Insurance and Registration The vehicle owner is responsible for ensuring there is proof of appropriate and valid insurance and registration on the vehicle. Version 2 January 28, 2014 Page 3

5 6. Company Vehicles 6.1 Authorization Prior to the use of company vehicles the employee must sign the Vehicle Use Agreement. (Appendix One) 6.2 Driver Responsibility All drivers must hold a valid driver s licence. AMVIC reserves the right to require driver s licence abstract at any time. The authorized driver must record all journeys in the approved logbook whether personal or company business. Personal travel will be recorded as a taxable benefit as per Revenue Canada Agency rules. Driving under the influence of drugs or alcohol is not permitted and may result in a penalty on the driver and also may adversely affect vehicle insurance. This would potentially result in the driver being liable for any damages resulting from an accident. The misuse and/or unauthorized use of a company vehicle may result in penalties being imposed on the driver. Drivers of company vehicles are required to observe all traffic laws, including regulations and by-laws relating to all aspects of motor vehicle operation. Drivers are personally responsible for the payment of all fines resulting from their use of company vehicles. Upon receiving a notice of infringement the employer will notify the offending driver with the offence. Penalties are defined as revoked driving privileges, full reimbursement of misuse or improper use of the vehicle, and/or possible termination. The driver is responsible for the payment of vehicle expenses and shall submit an expense claim on a regular basis at least once a month. All drivers should plan vehicle routes and combine a number of trips into one to increase vehicle efficiency. When not in use or during off-duty hours, company vehicles must be parked in a safe and secure location, and locked with all windows closed. Employees must take prudent measures to protect all company assets in their possession. Items of value are to be removed and secured. 6.3 Insurance and Registration All company vehicles will be insured with the appropriate levels required through the current provider and registered. The accounting department will oversee the acquisition and disposal process to ensure addition and removal of fleet vehicle assets is recorded correctly. 6.4 Accidents, Vandalism, Other Losses, and Reporting All accidents must be reported to the CFO or their substitute immediately. Version 2 January 28, 2014 Page 4

6 The CFO will contact the insurance provider to report the accident and oversee the resolution process. At the scene of an accident, drivers should provide and receive: name and address of driver, insurance provider and policy number, registration number, vehicle make and model, time and place of accident, any damages, and witness or police information. 6.5 Logbooks Each employee is required to maintain their own logbook. The logbook must have the name of the driver, date, and the number of kilometers driven broken down whether they were business or personal use. All drivers must submit a photocopy of the logbook (electronic version is acceptable) at the end of the month to the accounting department. Drivers should also keep their own copy of the log book in case they are personally audited by CRA with regard to the personal use of the vehicle. 6.6 Maintenance and Service Each vehicle will be assigned to an employee to oversee maintenance. That employee will assure that the manufacturer s guidelines for maintenance are followed. All employees that have been assigned a vehicle are required to maintain the interior in a clean manner. In the event that vehicle assignments change, the vehicle is to be returned with both the interior and exterior cleaned. There will be no smoking in any company vehicle. 6.7 Accessibility of Company Vehicles All company vehicles are to be made available for operational use during normal business hours and will be shared with other AMVIC employees when required. Reassignment of vehicles may be necessary if excessive kilometers are being placed on a single vehicle. Management will maintain suitable recording systems so vehicle availability, location, and driver can be readily determined. 7. Motor Vehicle Acquisitions In preparation for the annual budget, AMVIC management prepares an annual report to the Vehicle Policy Committee on historical vehicle costs. Vehicles that are purchased for Investigators can be up to a value of $35,000 plus GST. The vehicle purchased for the Executive Director can be up to a value of $43,000.plus GST. AMVIC management prepares a vehicle recommendation for the Board of Directors to consider as part of the annual budgeting process. Once approved, management prepares an Authorization for Expenditure (AFE) detailing the specific vehicle and maximum cost. This AFE is approved by the Chairman, Treasurer and Executive Director. A minimum of 3 Tenders will be requested from industry. Version 2 January 28, 2014 Page 5

7 Vehicles may be either purchased or leased. The total final price of the vehicle will include everything including GST. 8. Motor Vehicle Disposal Vehicles will typically be disposed of when they reach a minimum of 120,000 kilometers or an age of at least five years. Existing AMVIC vehicles can be replaced once they achieve 120,000 KM or 5 years in age whichever comes first. The vehicle for the Executive Director can be replaced at 100,000 KM or 3 years of use whichever comes first. Vehicles will be consigned to an auction for disposal. The vehicle should be current with the maintenance schedule and recently cleaned. All company property will be removed. 9. Rental Vehicles At the discretion of the Executive Director rental vehicles may be authorized. Sometimes it may be more cost-efficient to rent a vehicle than to have an employee use their privately owned vehicle. Version 2 January 28, 2014 Page 6

8 Appendix One AMVIC Vehicle Use Agreement The following agreement has been established in an effort to provide consistency in the management of AMVIC vehicles or vehicles owned and used by employees. 1. I hold a current and valid Alberta drivers licence - a copy is attached. I also agree to allow AMVIC to pull a driver s abstract at any time with notice. 2. All travel for both business and personal use of any company provided vehicles will be documented in the approved company logbook. 3. I will make sure the vehicle maintenance schedule is followed and the vehicle is maintained in a mechanically sound, roadworthy, safe and presentable condition. 4. I will ensure proper authorization is received prior to the use of any method of transportation used. 5. All travel for which privately owned vehicles are used will be reimbursed as per the travel reimbursement expense guide. 6. I will ensure proper insurance (as verified by AMVIC management) and registration are in place prior to any use of my privately owned vehicle. 7. I will abide by all traffic laws, including regulations and by-laws relating to all aspects of motor vehicle operation. 8. I will take prudent measures to protect all company assets in my possession. 9. I will ensure that I use the most cost-effective method of transportation that is available when I am required to travel in order to conduct company business. 10. I will report any maintenance needs and/or accidents/damage immediately to my manager and accounting department. I have read the Vehicle Policy and understand all of my responsibilities as outlined and will abide by them at all times. Employee Name Date: Employee Signature Version 2 January 28, 2014 Page 7

9 Appendix Two AMVIC Vehicle Logbook The logbook is intended to track personal and business usage of a vehicle. Since an employee may use more than one vehicle in a month, the log book is tracking the employee not the vehicle. The log can be maintained electronically and should include the following: Date Purpose Vehicle Used Business KM Personal KM Total KM Version 2 January 28, 2014 Page 8

10 The Alberta Motor Vehicle Industry Council provides a company vehicle for your use to perform some of your work duties. You are required to maintain a logbook for both personal and company kilometers travelled. You must submit a report monthly and have two options to choose from for usage. Option One: Leave the vehicle at your designated/assigned office and don t ever use it for personal use. The only time you use the company vehicle is when performing work duties. You will have no taxable benefit. I choose this option. Signature Name Date Option Two: You can use the company vehicle for personal use and will be charged a taxable benefit according to CRA rules. I choose this option. Signature Name Date Version 2 January 28, 2014 Page 9

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