HomeMy WebLinkAbout1980-2369 SPECIFYING RENTAL CHARGES TO BE CHARGED BY THE EQUIPMENT RENTAL AND REPLACEMENT FUND; DEFINING TERMS. ORDINANCE NO._ 42369
AN ORDINANCE relating to city funds and accounts; specifying
formulas for deriving rental charges to be charged
by the Equipment Rental and Replacement Fund;
defining terms; and amending Subsection 3.15.030 B,
and Section 3.15.040 of the City of Yakima Municipal
•
Code.
•
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Subsection 3.15.030 B of the City of Yakima Muni- •
cipal Code is hereby amended to read as follow:
"3.15.030 Ownership of vehicles--Equipment rental
rate--Formula.
•
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] plus [Operation costs] equals [[Total
• maintenance costs by vehicle type] divided by [Number
of vehicles in each vehicle type]] plus [Overhead)
2. Account B:
• a. [Replacement costs (RC)] equals [Total years of
service life] times [Inflation at ..09 annually] times
[Current cost] plus [Current cost]
b. [Salvage value (SV) equals [.15] times [Original
cost]
c. [Sinking fund monthly payment (SFm)] equals [[Replace
ment cost] less [Salvage value] (sinkins fund factor for
total years of service life)], divided by [3]
•
1. At a compound interest factor of 1.25 per quarter.
Section 2. Section 3.15.040 of the City of Yakima Municipal
Code is hereby amended to read as follows:
"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' shall mean salaries and wages,
materials and other costs necessary to maintain
110 . 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.
411 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
.0075 per month.
6. 'Original cost' shall mean the actual cost of a
new unit of equipment as determined by actual pur-
chase Ili
or by market analysis.
7. 'Replacement cost' shall mean the estimated future
cost of replacing a unit of equipment as deteLmined
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
157 of original cost." 110
Section 3. This ordinance shall be in full force and effect
thirty days after its passage, approval and publication as pro-
vided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this
day 1980.
iewr ,a74
Mayor
ATTEST:
Ar■
i Clerk
110
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