SAN MATEO, CA - Reimbursing employees for driving their own cars rather than assigning them county-owned vehicles could save San Mateo County up to $1.7 million per year, according to a 16-page grand jury report.

The report states the San Mateo County's vehicle fleet is "too large, not cost effective and has no comprehensive oversight," recommending the county add cars assigned to specific employees or departments to the general motor pool, except sheriff's patrol cars and other special vehicles.

The report also recommends the county reduce vehicle allowances of up to $13,000 per year given to county supervisors and some employees, reconsider which employees are allowed to take cars home overnight, and consider using software to better manage the fleet.

The county spent about $3.1 million for 556 vehicles assigned to specific people in the 2008-09 fiscal year, the grand jury found. With the assigned vehicles being driven an average of 10,000 miles per year, the average cost per mile was 85 cents. According to the report, the county could have saved $1.7 million if it had instead paid the employees the IRS rate of 55 cents per mile for driving their own cars.

The grand jury took aim at vehicle allowances, which totaled $639,994 in payments to 67 county employees in lieu of an assigned car. The grand jury said the county should set the car allowances at the average of the other four Bay Area counties, which have lower allowances and only give cars to department heads.

Other grand jury recommendations are to survey the entire fleet annually to determine which vehicles should be reassigned or sold; the county should annually reassess the 84 employees who take county vehicles home overnight; and officials should develop a method of verifying the mileage reported by employees driving their own cars.

Click here to view the full 16-page grand jury report.