HomeMy WebLinkAbout04/15/2025 09.D. Ordinance amending the City of Yakima Municipal Code Chapter 3.15 to accommodate the leasing of vehicles `y � ljlt
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.D.
For Meeting of: April 15, 2025
ITEM TITLE: Ordinance amending the City of Yakima Municipal Code Chapter 3.15
to accommodate the leasing of vehicles
SUBMITTED BY: *Mike Bailey, Interim Director of Finance & Budget
SUMMARY EXPLANATION:
Yakima Municipal Code 3.15 establishes a non-lapsing special revolving fund called the Equipment
Rental and Replacement Fund. This fund is designed to manage the operation and maintenance of
municipal equipment while ensuring sufficient financing for acquiring and replacing equipment. In
September 2024, the City Council signed a contract to start using a third-party fleet management service
for vehicle leases. If approved, this ordinance will amend the code to accommodate the leasing of
vehicles.
ITEM BUDGETED: N/A
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION: Pass Ordinance.
ATTACHMENTS:
YMC 3.15 with track change.pdf
Ordinance_amend YMC 3.15 to accommodate leasing vehicles
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ORDINANCE NO. 2025-
AN ORDINANCE amending the City of Yakima Municipal Code Chapter 3.15 to
accommodate the leasing of vehicles.
WHEREAS, the City Council has previously adopted Ordinance 2021-041 which
establishes criteria for an equipment rental and replacement fund within the City of Yakima; and
WHEREAS, Ordinance 2021-041 is codified in the Yakima Municipal Code in Chapter
3.15; and
WHEREAS, on September 17, 2024, the City Council authorized the leasing of vehicles
in Resolution 2024-172; now, therefore,
WHEREAS, the City Council finds it necessary to amend Chapter 3.15 to allow for
leasing in addition to rental and replacement; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1.
Chapter 3.15
EQUIPMENT LEASING RENTAL AND REPLACEMENT FUND
Sections:
3.15.010 Fund created—Purposes.
3.15.020 Administration of fund.
3.15.030 Equipment rental rates.
3.15.040 Definitions.
3.15.050 Operation and accounting.
3.15.060 Financing and sources of revenue.
3.15.070 New equipment.
3.15.080 Expenditures from fund.
3.15.090 Dissolution of fund.
3.15.010 Fund created—Purposes.
There is created a non-lapsing special revolving fund of the city known as the equipment leasing
rental and replacement fund. The purpose of the equipment and replacementthis fund shall be
to establish a central agency for the control, operation, maintenance, and leasing of
municipal equipment and the rental of such equipment to various departments of the city and
other governmental agencies at rates sufficient to meet costs of operation and to provide funds
for the acquisition and replacement of equipment. Money shall be expended from the fund for
salaries, wages and operations required for the repair and replacement, purchase, leasing, and
operation of motor vehicle equipment, and for the purchase of all equipment, materials and
supplies to be used in the administration and operation of that fund. (Ord. 2021-041 § 1 (Exh.
1), 2021; Ord. 2124 § 2 (part), 1977).
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3.15.020 Administration of fund.
Thisc cquipmcnt rcntal and rcplacement fund shall be administered by the fleet and facilities
manager subject to administrative authority of the city manager or his/her designee, who is
authorized to adopt administrative rules and regulations for the purpose of carrying out the
provisions of this chapter. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2124 § 2 (part), 1977).
3.15.030 Equipment rental rates.
The administrator of the fund shall establish a schedule of reasonable rental rates and other
charges to be paid by users of the fund's equipment, materials and supplies, which shall take
into consideration the costs and expenses of the following: leasing terms, operating supplies,
maintenance expenses, insurance, depreciation, and other direct cost items; operational costs
of the fund (overhead); contingency for the acquisition of additional equipment and replacement
of old equipment, including shop and administrative equipment; and such other items as may be
reasonable or necessary in the proper operation of the fund. The schedule shall be reviewed by
finance and city manager or his/her designee for its approval and shall be re-evaluated and
updated as necessary to reflect changes in operating, maintenance and depreciation, and
leasing costs. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2588 § 1, 1982; Ord. 2494 § 1, 1981;
Ord. 2408 § 1, 1980; Ord. 2369 § 1, 1980; Ord. 2124 § 2 (part), 1977)
3.15.040 Definitions.
As used in this chapter, unless a different meaning clearly appears from the context, the
following words and phrases shall have the following meanings ascribed to them:
1. "Maintenance cost" means salaries, wages, overhead, materials and other costs
necessary to maintain equipment.
2. "Vehicle type" means an equipment unit, vehicle or vehicles with commonality of
weight, chassis, wheel base, design and use.
3. "Overhead" means the cost of necessary facilities, maintenance equipment, interest
costs and administration.
4. "Months of vehicle life" means the anticipated number of months a unit of equipment
can be expected to provide useful service.
5. "Equipment" means a mechanical asset, tool, or electronic device designed and used
to perform some function and to produce a certain effect or result, usually maintained by
the equipment rental and replacement fund.
6. "Original cost" means the actual cost of a new unit of equipment as determined by
actual purchase or by market analysis.
7. "Replacement cost" means the estimated future cost of replacing a unit of equipment
as determined by the purchase price, adjusted for inflation.
8. "Salvage value" means the residual value of an asset after the expected period of
service life has expired. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2588 § 2, 1982: Ord.
2369 § 2, 1980: Ord. 2124 § 2 (part), 1977).
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9. "Lease" means a contract by which one party conveys property or services to another
for a specified time, usually in return for a periodic payment,
3.15.050 Operation and accounting.
The accounts of le equipment rental and replacementthis fund shall be set up and
maintained in such a manner as to separately show the rental and other sources of
revenue from the various departments and funds of the city, and shall make an allocation
of such revenues between that required for operational costs and the amount to be set
aside for the acquisition and replacement of equipment. There shall be such books,
accounts and records as are necessary to control and report the financial operations of the
equipment rcntal fund. The financial reporting system shall divide the accounts thereof into
two separately designated accounts as follows:
1. Internal Service Fund 551, which shall be the current operating account into which
shall be placed those portions of the charges made to the departments of the city of
Yakima in accordance with the provisions of YMC 3.15.030 which are specifically billed
said departments to provide sufficient moneys to provide the salaries and wages,
materials, overhead and other costs necessary to operate and maintain all motor vehicle
equipment rented thereto. There shall also be placed into Fund 551 moneys which may
from time to time be made specifically available thereto by action of the city council.
2. Internal Service Fund 552, which shall be the account for capital recovery into which
shall be placed charges made to the departments of the city of Yakima from time to time
as funds are available and authorized by the city council to purchase new equipment and
replace used equipment as required to carry out the purposes of the equipment rentalthis
fund. There shall also be placed in Fund 552 moneys which are derived from the direct
sale of any equipment or other capital assets of the fund, interest proceeds from invested
funds and any moneys which may from time to time be made specifically available thereto
by action of the city council. Exclusions will apply to purchases outside of the Internal
Services Fund 552 that have special revenue funding sources and require special
reporting requirements.(Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2494 § 2, 1981: Ord. 2124
§ 2 (part), 1977).
3.15.060 Financing and sources of revenue.
The equipment rental and replacement fund shall be financed from the budget
appropriations made for such purpose in the budget. Should financing prove to be
inadequate for the fund's current annual outlay requirements, additional transfers of
money to the equipment rental and replacement fund shall be made from the participating
funds and departments until the fund becomes self-sufficient to finance a replacement
purchase or lease.
The equipment rental and replacement fund shall derive its moneys in any of the following
ways:
A. By direct appropriation in the budget adopted by ordinance;
B. By appropriation or budgetary transfer made by ordinance from other fund or funds by
the city;
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C. From proceeds received from the rental of any equipment owned by the fund to other
departments, offices or funds of the city or governmental agencies; this shall include
transfers from other funds or direct payment of amounts received for the use of such
equipment on reimbursable projects done by the city. (Ord. 2021-041 § 1 (Exh. 1), 2021).
3.15.070 New equipment.
Whenever a department of the city declares that a new type of equipment will be required to
perform the functions of that department, and the new type of equipment does not replace an
equipment unit substantially the same in style and design, said department shall purchase
said equipment and transfer that unit to the equipment rental and replacemer; fund at no
charge to the fund. Thereafter, the department will be required to pay monthly charges on the
new unit of equipment sufficient to provide for future replacement. (Ord. 2021-041 § 1 (Exh. 1),
2021; Ord. 2408 § 2, 1980: Ord. 2124 § 2 (part), 1977).
3.15.080 Expenditures from fund.
Expenditures from the equipment rental and replacement fund shall be made only for the
purposes specified in YMC 3.15.010. No expenditure shall be made from such fund unless the
Yakima city council shall approve such expenditure by passing an ordinance appropriating
money within the fund for the purpose for which the expenditure is to be made, or by including
an appropriation for such purpose in the budget. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2124
§ 2 (part), 1977).
3.15.090 Dissolution of fund.
In the event of the dissolution and abolishment of the equipment rental and replacement fund by
subsequent action of the Yakima city council, then all moneys deposited therein shall revert to
and be deposited in the several funds and departments participating in the equipment rental and
fund on the basis of contributions made from the participating funds and
departments to the fund during the previous years. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord.
2124 § 2 (part), 1977).
Section 2. This ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 15th day of April, 2025.
ATTEST: Patricia Byers, Mayor
Rosalinda Ibarra, City Clerk
Publication Date:
Effective Date:
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ORDINANCE NO. 2025-
AN ORDINANCE amending the City of Yakima Municipal Code Chapter 3.15 to
accommodate the leasing of vehicles.
WHEREAS, the City Council has previously adopted Ordinance 2021-041 which
establishes criteria for an equipment rental and replacement fund within the City of Yakima; and
WHEREAS, Ordinance 2021-041 is codified in the Yakima Municipal Code in Chapter
3.15; and
WHEREAS, on September 17, 2024, the City Council authorized the leasing of vehicles
in Resolution 2024-172; now, therefore,
WHEREAS, the City Council finds it necessary to amend Chapter 3.15 to allow for
leasing in addition to rental and replacement; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1.
Chapter 3.15
EQUIPMENT LEASING, RENTAL, AND REPLACEMENT FUND
Sections:
3.15.010 Fund created—Purposes.
3.15.020 Administration of fund.
3.15.030 Equipment rental rates.
3.15.040 Definitions.
3.15.050 Operation and accounting.
3.15.060 Financing and sources of revenue.
3.15.070 New equipment.
3.15.080 Expenditures from fund.
3.15.090 Dissolution of fund.
3.15.010 Fund created—Purposes.
There is created a non-lapsing special revolving fund of the city known as the equipment leasing
rental and replacement fund. The purpose of this fund shall be to establish a central agency for
the control, operation, maintenance, and leasing of municipal equipment and the rental of such
equipment to various departments of the city and other governmental agencies at rates
sufficient to meet costs of operation and to provide funds for the acquisition and replacement of
equipment. Money shall be expended from the fund for salaries, wages and operations required
for the repair and replacement, purchase, leasing, and operation of motor vehicle equipment,
and for the purchase of all equipment, materials and supplies to be used in the administration
and operation of that fund. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2124 § 2 (part), 1977).
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3.15.020 Administration of fund.
This fund shall be administered by the fleet and facilities manager subject to administrative
authority of the city manager or his/her designee, who is authorized to adopt administrative rules
and regulations for the purpose of carrying out the provisions of this chapter. (Ord. 2021-041 § 1
(Exh. 1), 2021; Ord. 2124 § 2 (part), 1977).
3.15.030 Equipment rental rates.
The administrator of the fund shall establish a schedule of reasonable rental rates and other
charges to be paid by users of the fund's equipment, materials and supplies, which shall take
into consideration the costs and expenses of the following: leasing terms, operating supplies,
maintenance expenses, insurance, depreciation, and other direct cost items; operational costs
of the fund (overhead); contingency for the acquisition of additional equipment and replacement
of old equipment, including shop and administrative equipment; and such other items as may be
reasonable or necessary in the proper operation of the fund. The schedule shall be reviewed by
finance and city manager or his/her designee for its approval and shall be re-evaluated and
updated as necessary to reflect changes in operating, maintenance and depreciation, and
leasing costs. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2588 § 1, 1982; Ord. 2494 § 1, 1981;
Ord. 2408 § 1, 1980; Ord. 2369 § 1, 1980; Ord. 2124 § 2 (part), 1977)
3.15.040 Definitions.
As used in this chapter, unless a different meaning clearly appears from the context, the
following words and phrases shall have the following meanings ascribed to them:
1. "Maintenance cost" means salaries, wages, overhead, materials and other costs
necessary to maintain equipment.
2. "Vehicle type" means an equipment unit, vehicle or vehicles with commonality of
weight, chassis, wheel base, design and use.
3. "Overhead" means the cost of necessary facilities, maintenance equipment, interest
costs and administration.
4. "Months of vehicle life" means the anticipated number of months a unit of equipment
can be expected to provide useful service.
5. "Equipment" means a mechanical asset, tool, or electronic device designed and used
to perform some function and to produce a certain effect or result, usually maintained by
the equipment rental and replacement fund.
6. "Original cost" means the actual cost of a new unit of equipment as determined by
actual purchase or by market analysis.
7. "Replacement cost" means the estimated future cost of replacing a unit of equipment
as determined by the purchase price, adjusted for inflation.
8. "Salvage value" means the residual value of an asset after the expected period of
service life has expired. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2588 § 2, 1982: Ord.
2369 § 2, 1980: Ord. 2124 § 2 (part), 1977).
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9. "Lease" means a contract by which one party conveys property or services to another
for a specified time, usually in return for a periodic payment,
3.15.050 Operation and accounting.
The accounts of this fund shall be set up and maintained in such a manner as to
separately show the rental and other sources of revenue from the various departments
and funds of the city, and shall make an allocation of such revenues between that required
for operational costs and the amount to be set aside for the acquisition and replacement of
equipment. There shall be such books, accounts and records as are necessary to control
and report the financial operations of the fund. The financial reporting system shall divide
the accounts thereof into two separately designated accounts as follows:
1. Internal Service Fund 551, which shall be the current operating account into which
shall be placed those portions of the charges made to the departments of the city of
Yakima in accordance with the provisions of YMC 3.15.030 which are specifically billed
said departments to provide sufficient moneys to provide the salaries and wages,
materials, overhead and other costs necessary to operate and maintain all motor vehicle
equipment rented thereto. There shall also be placed into Fund 551 moneys which may
from time to time be made specifically available thereto by action of the city council.
2. Internal Service Fund 552, which shall be the account for capital recovery into which
shall be placed charges made to the departments of the city of Yakima from time to time
as funds are available and authorized by the city council to purchase new equipment and
replace used equipment as required to carry out the purposes of this fund. There shall
also be placed in Fund 552 moneys which are derived from the direct sale of any
equipment or other capital assets of the fund, interest proceeds from invested funds and
any moneys which may from time to time be made specifically available thereto by action
of the city council. Exclusions will apply to purchases outside of the Internal Services
Fund 552 that have special revenue funding sources and require special reporting
requirements.(Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2494 § 2, 1981: Ord. 2124 §2
(part), 1977).
3.15.060 Financing and sources of revenue.
The fund shall be financed from the budget appropriations made for such purpose in the
budget. Should financing prove to be inadequate for the fund's current annual outlay
requirements, additional transfers of money to the fund shall be made from the
participating funds and departments until the fund becomes self-sufficient to finance a
replacement purchase or lease.
The fund shall derive its moneys in any of the following ways:
A. By direct appropriation in the budget adopted by ordinance;
B. By appropriation or budgetary transfer made by ordinance from other fund or funds by
the city;
C. From proceeds received from the rental of any equipment owned by the fund to other
departments, offices or funds of the city or governmental agencies; this shall include
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transfers from other funds or direct payment of amounts received for the use of such
equipment on reimbursable projects done by the city. (Ord. 2021-041 § 1 (Exh. 1), 2021).
3.15.070 New equipment.
Whenever a department of the city declares that a new type of equipment will be required to
perform the functions of that department, and the new type of equipment does not replace an
equipment unit substantially the same in style and design, said department shall purchase or
lease said equipment and transfer that unit to the fund at no charge to the fund. Thereafter, the
department will be required to pay monthly charges on the new unit of equipment sufficient to
provide for future replacement. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2408 §2, 1980: Ord.
2124 § 2 (part), 1977).
3.15.080 Expenditures from fund.
Expenditures from the fund shall be made only for the purposes specified in YMC 3.15.010. No
expenditure shall be made from such fund unless the Yakima city council shall approve such
expenditure by passing an ordinance appropriating money within the fund for the purpose for
which the expenditure is to be made, or by including an appropriation for such purpose in the
budget. (Ord. 2021-041 § 1 (Exh. 1), 2021; Ord. 2124 § 2 (part), 1977).
3.15.090 Dissolution of fund.
In the event of the dissolution and abolishment of the fund by subsequent action of the Yakima
city council, then all moneys deposited therein shall revert to and be deposited in the several
funds and departments participating in this fund on the basis of contributions made from the
participating funds and departments to the fund during the previous years. (Ord. 2021-041 § 1
(Exh. 1), 2021; Ord. 2124 § 2 (part), 1977).
Section 2. This ordinance shall be in full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 15th day of April, 2025.
ATTEST: Patricia Byers, Mayor
Rosalinda Ibarra, City Clerk
Publication Date: April 19, 2025
Effective Date: May 19, 2025
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