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1 [Author Name] [Type the abstract of the document here. The abstract is typically a short summary of the contentsof the document.] Utility Take-Home Vehicle Policy Example

2 Fleet Management Approved by: Effective Date: Vehicle General Policy No. 1 I. Objective A. To establish policies and procedures governing the assignment, use, operation, and maintenance of Company owned or leased vehicles and equipment. B. This policy supersedes all previous policies relating to the Company s fleet. II. Vehicle Assignment Guidelines A. Any new vehicle requests or changes in vehicle assignment must be approved in writing by the Vice President for that Business area, and forwarded to the Manager, Fleet for processing. B. Assignment of vehicles will be based solely on 'Utility' business need and is not intended to be used as part of an employee's compensation. C. Vehicle assignments should be reviewed by management during budget preparation each calendar year. D. Vehicle assignment will be discontinued when the criteria for assignment no longer exists. E. Fleet vehicles can fall into several different categories: 1. General Use Vehicles a. General Use Vehicles include the vast majority of 'Utility' vehicles that are provided for use by our employees. Included in this category are crew vehicles, bucket trucks, derricks, service vehicles, etc., that are used by our employees to accomplish the work of the company. Some light duty vans, pickups and passenger cars are also included in this classification if the vehicle is typically used in a pool application where many employees from a work location may use the vehicle from time to time.

3 2. Assigned Vehicles a. Assigned Vehicles typically include light duty cars, trucks and vans that may be assigned to a specific group or to an individual employee based on frequency of need. An example of an Assigned Vehicle would include vehicles used by a work group composed of Design Technicians where the vehicles are used exclusively by members of that specific work group. Company vehicles that are used in some areas for meter reading routes, and pool vehicles assigned to a department, are other examples. Assigned vehicles are normally parked at a company work location during the non-work hours, but may occasionally be taken home overnight to accommodate early business travel or a late return from company business. Agent vehicles that are routinely kept at the employee's home overnight are also considered assigned vehicles. b. A vehicle may be assigned to an individual employee when regular business travel requirements result in sufficient business miles to be driven to justify the dedicated use of a company vehicle. There should be a clear economic benefit to 'Utility', meaning the potential cost of reimbursement for personal vehicle use should exceed the costs associated with provision of an Assigned Vehicle. However, unless the criteria are met to commute to and from work, such vehicle shall be parked overnight and on weekends at the employee's work location. 3. Assigned Vehicles with Commute a. Assigned Vehicles with Commute are typically light duty cars and trucks that meet specific criteria for provision of a company vehicle on a 24/7 basis. b. Criteria for Assigned Vehicles with Commute shall include one or more of the following criteria: i. A substantial requirement for travel directly from home, without first reporting to their assigned work location, to various locations to perform job duties in support of the company. ii. A demonstrated need for having the company vehicle immediately available for company business or response to emergencies outside the normal scheduled working hours that requires travel other than to the employee's normal work location. Employees subject to call out to their normal work location is not sufficient to support commuting with a company

4 vehicle. (See the Employee Expense, Travel and Entertainment policy for possible mileage reimbursement.) iii. The employee requires a special company vehicle and/or carries specialized equipment needed for direct response to emergencies outside of normal working hours. c. To assure compliance with IRS regulations regarding taxes based on commute benefit, a completed Vehicle Assignment Form must be completed and forwarded to Fleet Management before any requested additions or reassignments of Assigned Vehicles with Commute are finalized. Any changes to either home or reporting address will also require submission of a new Vehicle Assignment Form. III. Use of Company Vehicles A. The use of Company vehicles is exclusively for the transportation of personnel, materials, and equipment while conducting the Company s business. B. Employees driving a Company vehicle are responsible for its proper use and are authorized to use the vehicle for the Company s business. 1. Company vehicles should not be left parked in areas that could reflect badly on 'Utility', for example, parked at a bar or gambling establishment, or in any area that would cause the public to question 'Utility s prudent use of its property in conducting its business. As noted in the 'Utility' Code of Business Conduct and Ethics, "All of our employees, officers and directors must conduct themselves according to the language and spirit of this Code and seek to avoid even the appearance of improper behavior." "Even wellintentioned actions that violate the law or this Code may result in negative consequences for the Company and for the individuals involved." 2. Personal use of a company vehicle is prohibited except for Assigned Vehicles with Commute that may be used for commuting to and from work. Personal use, other than commute, or family member use is a violation of this policy. 2. Personal use of any company vehicle is prohibited, except for routine commuting to and from work by Assigned Vehicles with Commute. With prior authorization from appropriate supervision, company vehicles may occasionally and infrequently be used for other de minimis travel. This de minimis use is defined as a stop for a personal errand on the way between home and work, and should not require significant extra miles to be driven.

5 Other personal use of a Company Vehicle, or family member use is a violation of this policy. 3. Transportation of alcoholic beverages, firearms, explosives or any illegal substance is prohibited in all company vehicles. 4. Company Vehicles shall not be operated during non-work hours except for the employees routine commute, as applicable, or in support of company business. 5. Improper use or abuse of company vehicles will result in discipline of the employee and/or withdrawal of the vehicle, in the case of an Assigned Vehicle with Commute. C. All Company vehicles and equipment, when not in use, should be available for use by other employees for Company business. This also applies specifically to all Assigned Vehicles with Commute, when not used during the regular business day, or is not to be used for extended periods of time, such as vacations. When available, a company car or light truck should be utilized since it is a lower cost option than paying mileage reimbursement for use of a personal vehicle. D. Assigned vehicles, pool vehicles and operating work equipment should be stored at Company facilities after working hours. However, it may be necessary for a Company vehicle to be taken home by an employee because of the following reasons: 1. Necessity for beginning the next day s trip prior to the time vehicles are available on Company property. 2. Return from a trip after the time when it is practical to return the vehicle. E. It is the responsibility of Company management to assure that employees under their jurisdiction make the most economical and proper use of Company vehicles and equipment. F. Consistent with the promotion of a healthy environment and in support of establishing a smoke-free workplace, smoking is not allowed inside any company vehicle at any time.

6 IV. Operator s Requirements A. Only employees holding valid applicable vehicle operator s licenses are authorized to drive Company vehicles on Company business. B. Vehicle and equipment operators are responsible for the fleet units they operate. Operators must assure the unit s physical appearance and mechanical condition is in compliance with Company policy, State and Federal regulations, is safe to operate, and reflects well on the Company s image and reputation. C. All vehicle and equipment units including toolboxes and portable equipment are to be locked and properly secured when not in use or attended. D. All local, State, and Federal laws are to be observed by employees. Employees are expected to practice defensive and safe operation of vehicles and equipment at all times. E. Seat belts are to be used at all times when driving vehicles or operating equipment. F. Employees must be fit for the duty of driving and may not drive a Company Vehicle if unfit for duty due to fatigue or any other reason. G. All motor vehicle incidents should be handled in accordance to the directions provided in the Customer Operations Safety Manual, Section Accident procedures, liability insurance information cards and vehicle registrations, are carried in the glove compartment of all vehicles in the unit information pouch. 2. Prior to any accident repairs, contact Fleet Management for proper authorization. H. It is the policy of the Company to bear the additional cost of maintaining a commercial drivers license (CDL) for those employees required to have one for the legal performance of their job. The Company will reimburse employees the differential cost between a regular license and the cost of commercial drivers license. The company will also pay the cost of any additional endorsements required for the employee to perform their job, for example, mandated endorsements to haul hazardous materials.

7 V. Types of Vehicles A. When determining the type of vehicle required for additions and assignments, due consideration should be given to how the vehicle will be utilized. The most economical vehicle selection that will serve the duty required should be selected. 1. Considerations for vehicle type selection should include: a. Will the vehicle be used to transport passengers? If so, how many? b. Will the vehicle be used to haul equipment and if so, the anticipated condition, weight or bulk of the hauled items? c. Will the vehicle need to traverse unimproved roads in all weather conditions? d. Will the vehicle be used to tow other equipment? e. What are the overall ownership costs of the vehicle? 2. Please contact Fleet Management to discuss the vehicle selection options, and for assistance in running the economic analysis of the various vehicle types. As a general rule, overall vehicle ownership cost will take into consideration: a. Initial acquisition cost and/or lease payments. b. Operational costs including fuel, tires, routine service, and maintenance. c. Anticipated service life of the vehicle. d. Residual value at end of service life. 3. As a general rule for light duty vehicles, the overall ownership costs are ranked below starting with the least costly: a. Passenger car. b. Standard pickup or mid-sized van c. Heavier duty pickup (3/4 ton) or full-sized van d. Pickup with four-wheel drive

8 VI. Maintenance of Vehicles and Equipment A. Each employee operator is responsible for efficient maintenance and safe storage of the Company fleet. The employee should determine that vehicle and equipment units are in good running order at all times and receives economical preventive and corrective maintenance including the observance of warranty provisions. B. Manufacturers provide an operator s manual with each vehicle and equipment unit for the proper care and maintenance of the equipment. All employees who operate a vehicle or equipment unit should familiarize themselves with the operator s manual contents and follow the instructions. Additionally, Fleet Management has established preventive maintenance procedures governing vehicle and equipment care which are to be observed. C. Vehicle and equipment warranties require close attention to assure that all required repairs covered by warranty are performed during the warranty period. D. All Company vehicles and equipment units are to be washed regularly and kept clean, inside and out. The employee operator is responsible for individual unit appearance. E. No modifications will be made to, nor additional accessory items added to Company vehicles and equipment without the written approval of Fleet Management. F. All vehicles and equipment units will be identified by Company number and decals that are positioned according to Fleet Management guidelines. G. The overall appearance of each fleet unit is to be regularly evaluated as part of Fleet Management preventive maintenance procedures. Please report any unit that requires minor repair or repainting to Fleet Management.

9 VII. Budgeting Vehicle and Equipment Requirements A. Fleet Management is established for centralized accountability and control of the Company s fleet. The department is charged with the organization and implementation of the Company fleet management program which applies to all vehicles, accessory work equipment, power operated equipment and trailers. B. Fleet Management is responsible for the specification, acquisition and disposal of all vehicles, power operated equipment, trailers and work equipment leased or owned by the Company in a manner that will provide for customer needs. Fleet is also responsible for pneumatic and hydraulic tools powered from vehicle and equipment units. C. There are a small number of loaner vehicles located in Topeka and Wichita to cover breakdowns and emergency situations. Contact should be made with the Topeka and Wichita fleet garages to determine what units are available at any given time. If needed, Fleet will rent additional equipment to cover interim needs. D. Proposed replacements and additions to the Company fleet will be developed annually by Fleet Management as an integral part of the budget development process. 1. Vehicle acquisition will be evaluated on the basis of need, and consideration will be given to other alternatives, such as substitution of another vehicle, or granting mileage reimbursement, in conjunction with discussions between Fleet Management and the business unit head. 2. The addition of vehicles and equipment to the Company s fleet will be authorized upon written approval by the Vice President for that Business Area. 3. Fleet Management will provide each Responsibility Area with the following budget reports for preliminary budget development. a. Vehicle and truck mounted equipment b. Power operated equipment c. Trailers 4. Budget Report selections are based on age and usage criteria according to Fleet Management replacement standards and financial criteria outlined by our Finance group. The units listed will indicate the potential replacements for each area.

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