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HomeMy WebLinkAbout1977-2124 ORDINANCE NO ()2. .e2? AN ORDINANCE relating to city funds and accounts; repealing exist- ing Chapter 3.15, and Sections 3.15.010, 3.15.020, 3.15.030, 3.15.040 and 3.15.050, all of the City of Yakima Municipal Code; establishing a City Equipment Rental and Replacement Fund, defining terms applicable thereto, providing means for establishing rental rates, and designating the purpose and providing for the administration of such fund; enacting a new Chapter 3.15, "Equipment Rental and Replacement Fund", 111 and new Sections 3.15.010, 3.15.020, 3.15.030, 3.15.040, 3.15.050, 3.15.060, 3.15.070, 3.15.080 and 3.15.090, all of the City of Yakima Municipal. Code; and declaring an emergency. BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Existing Chapter 3.15, "City Garage Fund" (Equip- ment Rental and Revolving Fund), and all sections thereof, consist- ing of Sections 3.15.010, 3.15.020, 3.15.030, 3.15.040, and 3.15.050, all of the City of Yakima Municipal Code, are hereby repealed. Section 2. As the repeal provided by Section 1 of this ordi- nance becomes effective, there is hereby enacted a new chapter and new sections thereof of the City of Yakima Municipal Code, which new chapter and new sections shall be entitled, shall be numbered 411 and shall read as follows: "Chapter 3.15 EQUIPMENT RENTAL AND REPLACEMENT FUND 3.15.010 Fund created--Purposes. There is hereby created a non lapsing special revolving fund of the City known as the Equipment Rental and Replacement Fund. Money shall be expended from the fund for salaries, wages and operations required for the repair and replacement, pur- chase 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. 3.15.020 Administration of fund. The Equipment Rental and Replacement Fund shall be administered by the City Manager, who is hereby authorized to adopt adminis- trative rules and regulations for the purpose of carry- ing out the provisions of this chapter. 3.15.030 Ownership of vehicles—Equipment rental rates--Formula. A. All motor vehicles of the City of Yakima shall be owned by the Equipment Rental and Replacement Fund. • • • B. Rental charges for the use of said motor vehicles • and equipment shall be sufficient to cover the maintenance, operation and replacement of such equipment; and the terms for the rental thereof may be on an annual, monthly, weekly or daily basis. A schedule of monthly charges shall be prepared utilizing the following formulas: • 1. Account A: Maintenance + Operation Costs = Total maintenance cost by vehicle type + Overhead No. of vehicles in each vehicle type 2. Account • a. .Replacement Cost = Total years of service life x (RC) inflation at .06 annually x current cost + cur-rent cost b. Salvage Value = .15 x original cost (SV) c. Sinking Fund Mo. Payment = Replacement cost less sal- vage value (sinking fund factor (SFm) 1. for total years of service life) 3 1. at a compound interest factor of 1.25 per quarter C. Maintenance and operation charges for weekly and daily rates will be calculated by the following method: monthly rate x .23 = weekly rate weekly rate x .2 = daily rate D. Rental rates shall be reviewed at least annually and may be revised to meet changing costs of maintenance, operation and replacement. When an equipment unit is pur- chased for a single purpose or seasonal need, the depart- ment requiring the equipment unit shall pay the Account B charges monthly whether the equipment is used by that depart- ment or not, unless some other department or agency uses h, the equipment. 3.15.040 Definitions. As used in this chapter, unless a different meaning clearly appears from the con- . text, the following words and phrases shall have the follow- ing means ascribed to them: 14" 'Maintenance cost° shall mean salaries and wages, materials and other costs necessary to maintain equipment but not including overhead. 2. 'Vehicle type' shall mean an equipment unit, vehicle or vehicles with commonality of weight, chassis, wheel base, design and use. 111 -2- • • 3. 'Overhead' shall mean the cost of necessary facili- ties, maintenance equipment, interest costs and administration. 4. 'Months of vehicle life' shall mean the anticipated number of months a unit of equipment can be expected to provide useful service. 5. 'Inflation shall be calculated at the rate of .005 per month. 6. 'Original cost' shall mean the actual cost of a. new unit of equipment as determined by actual purchase or by market analysis. 7. 'Replacement cost' shall mean the estimated future cost of replacing a unit of equipment as determined by the purchase price, adjusted for inflation. 8. 'Sinking fund' shall mean an account established by uniform monthly deposits throughout the life of an asset which draws interest at a rate of 1.25% per quarter, and accumulated so that the fund will equal the replacement cost of the asset minus its estimated salvage value at the end of its projected life. • 9. Salvage value' shall mean the residual value of an asset after the expected period of service life has expired. Salvage value shall be calculated at 15% of original cost. 3.15.050 Financial reporting system. There shall be such books, accounts and records as are necessary to control and report the financial operations of the equip- ., ment rental fund. The financial reporting system shall divide the accounts thereof into two separately designated accounts as follows: 1. 'Account A', 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 Sec- tion 3.15.030 of this chapter which are specifically billed said departments to provide sufficient monies to provide the salaries and wages, materials, over- head and other costs necessary to operate and main- tain all motor vehicle equipment rented thereto. There shall also be placed into Account A monies which may from time to time be made specifically available thereto by action of the City Council. 2. 'Account B' which shall be the sinking fund depreci- ation account for capital recovery into which shall be placed charges made to the departments of the City of Yakima in accordance with the provisions of Section 3.15.030 of this chapter, which have speci- • fically billed said divisions and departments to provide sufficient monies to purchase new equipment and replace used equipment as required to carry out -3- the purposes of the equipment rental,fund. There shall also be placed in Account B monies which are derived from the direct sale of any equipment or other capital assets of the fund, interest proceeds from invested funds and any monies which may from time to time be made specifically available thereto by action of the City Council. 3.15.060 Transition schedule. In order to provide an orderly transition of all motor vehicle equipment from Parks and Recreation, Police, Fire, Airport and Transit, the City Manager shall cause the following steps to be undertaken. 1. All equipment will be transferred to the Equipment Rental and Replacement Fund effective retroactively to January 1, 1977, and Federal Revenue sharing monies will be deposited to the Equipment Rental and Replacement Fund to cover the B Account (replacement) charges for the year of 1977. 2. Effective June 1, 1977, Transit Department equipment has been and will continue to be maintained at the City shops by Garage personnel and the Transit Divi- sion will begin paying A Account charges effective as of that date. Effective July 1, 1977, Transit Division mechanics and monies have been transferred to the Garage Division. 3. Effective Dec. 1, 1977, equipment from the Parks and Recreation Department will be maintained by the City shops, and the Parks and Recreation Department will begin paying A Account charges to the Equipment Rental and Replacement Fund effective as of that date. Mechanics in the Parks and Recreation Department and their salary monies will be transferred to the Garage Division effective as of that date. 4. Effective January 1, 1978, Airport equipment will be maintained by the Garage Division. 5. Effective July 1, 1978, Police and Fire vehicles will be maintained by the Garage Division. 6. The equipment transferred from the departments to the Equipment Rental and Replacement Fund and declared to be surplus to the needs of the City shall have the proceeds of the sale credited to the Equipment Rental and Replacement Fund. 3.15.070 New equipment. Whenever a department of the City declares that a new type of equipment will b& 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 Replacement Fund at no charge to the fund. Thereafter, the department will be required to pay Account A and Account B monthly charges on the new unit of equipment. -4- , . . , 3.15.080 Expenditures from fund. Expenditures from the Equipment Rental and Replacement Fund shall be made only for the purposes specified in Section 3.15.010 of this chapter. 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. 3.15.090 Dissolution of fund. In the event of the Allik dissolution and abolishment of the Equipment Rental and III Replacement Fund by subsequent action of the Yakima City Council, then all monies deposited therein shall revert to and be deposited in the several funds and departments participating in the Equipment Rental and Replacement Fund on the basis of B Account payments to the fund during the previous fiscal year." Section 3. This ordinance is one to provide for the immediate preservation of the public peace, property, health, safety and wel- fare of the people of the City of Yakima and an emergency is hereby declared to exist and this ordinance shall be in full force and effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this..34)/ day 0 / / • of ;,/ , 1977. AO / Pe/17/079•Iden) _ _0' ..:* • / Mayor ATTEST: AO City" lerk • 4111 -5-