Roger Niello, of Niello Co. auto dealerships, called panel's decision "a little shortsighted."

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Legislature hopes to avoid losses on car sale

Published: Monday, Apr. 18, 2011 - 12:00 am | Page 3A
Last Modified: Wednesday, May. 25, 2011 - 12:22 pm

Want Assembly Speaker John A. Pérez's 2010 Chrysler Sebring Limited Convertible?

How about Senate President Pro Tem Darrell Steinberg's 2007 Toyota Highlander?

Lawmakers must turn in their keys by year's end to 80 vehicles whose purchase, gas, maintenance and insurance are paid largely by taxpayers.

The California Citizens Compensation Commission's decision Thursday to eliminate the car program means the vehicles are likely to wind up with individuals, businesses or state agencies.

But replacing the program with a standard legislative car allowance of $300 per month raises questions about whether the state can avoid losses in selling the vehicles, particularly newer models, whose leases with lawmakers were not set to expire for several years.

"We'll have to go out into the market and try to find a way to get a return on our investment," said Nathan Barankin, Steinberg's spokesman. "We don't know right now what we're going to do."

Former Republican Assemblyman Roger Niello, an owner of Niello Co. car dealerships, said that early termination of three- or four-year vehicle leases is likely to produce substantial losses when the Legislature sells its newer-model cars.

"What's been done is a little shortsighted," Niello said of the pay commission.

But David Rodgers, general manager of the Sullivan Auto Group, said that the current high price of gasoline is generating increased demand for used cars and hybrid models that could help the Legislature avoid taking a fiscal hit on car sales.

"They could actually come out looking pretty good on the deal," he said.

The Assembly and Senate have eight months to devise a plan, since the commission's decision does not take effect until December.

The vehicles range from a Toyota Highlander and Chevrolet Tahoe, hybrids costing about $48,500 apiece, to a 2006 Chrysler 300 purchased for $9,425 last year.

Cumulatively, the purchase price of lawmakers' cars cost taxpayers more than $2.5 million. Thirty-nine of the vehicles are 2009 models or newer, while nine have been on the road for four years or more – the oldest is a 2004 Toyota Prius.

Sen. Rod Wright, D-Inglewood, conducts business in a 2005 Cadillac XLR Roadster.

Freshman Assemblyman Bob Wieckowski, D-Fremont, drives a new Subaru Outback.

Assemblyman Jim Nielsen, R-Gerber, prefers a 2009 Ford Edge.

More than half of the legislative vehicles are hybrids designed to maximize gas mileage and minimize pollution in a state that touts its reputation for strict environmental standards.

For decades, the Legislature has offered to buy each lawmaker a car of his or her choice, service it, pay for gasoline, and lease it to the legislator – who pays 28 percent of the lease tab while the state kicks in up to $285 per month. Nearly 40 of 120 lawmakers decline the perk.

Legislative officials clearly were not happy with the commission's decision – whose legality was questioned by panel Chairman Tom Dalzell – but there were no immediate vows to sue over elimination of the car program.

Shannon Murphy, Pérez spokeswoman, made it clear Friday that the Assembly is keeping its options open.

"We believe the ruling was ambiguous, we recognize that (Dalzell) has raised the question of legality, and we're going to review the matter," Murphy said.

Gov. Jerry Brown does not plan to intervene.

"There is a process, the governor respects the process, and the decision has been made," said Gil Duran, Brown's spokesman.

Last week's action by the pay commission was meant to force legislators to drive their personal vehicles and pick up much of the tab.

The Assembly and Senate are not barred from seeking alternatives – for example, they conceivably could bolster their fleet of pool cars so that every lawmaker could continue driving at public expense while pocketing the $300 car allowance.

Barankin downplayed such possibilities, saying the Senate is committed to tightening its belt.

"The objective here is not to do something that costs more money," he said.

© Copyright The Sacramento Bee. All rights reserved.


Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.

Read more articles by Jim Sanders



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