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HomeMy WebLinkAbout1982-2588 FORMULAS FOR RENTAL CHARGES TO BE CHARGED BY THE EQUIPMENT RENTAL & REPLACEMENT FUND; AND DEFINING TERMS. III ORDINANCE NO. 00 , . AN ORDINANCE relating to, city funds and accounts specifying formulas for deriving rental charges to be charged by the Equipment Rental and Replacement Fund; 410 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 Municipal Code is hereby amended to read as follows: "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 111 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 equals (total miles by vehicle type) multiplied by (maintenance cost per mile). Operation equals (actual fuel (gallons) usage by type of vehicle) multiplied by (current fuel cost per gallon). 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 AM II, ‘ cost] c. [Sinking fund monthly payment (SFm)] equals [Replacement cost] less [Salvage value] (sinking fund- - - factor for total years of service life)}i 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: 11/ "3.15.040 Definitions. As used in this chapter, unless M i l2g: n Wo li r l d: n li n ig I NUrt context, the ascribed to them: 1. 'Maintenance cost' shall mean salaries, wages, overhead, materials and other cost necessary to maintain equipment. 411 2. 'Vehicle type' shall mean an equipment unit, vehicle or vehicles with commonality of weight, chassis, wheel base, design and use. 3. 'Overhead' shall mean the cost of necessary facilities, maintenance equipment, interest costs and administration. 4. 'Months of vehicle life' shall mean the anticipated 411 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. 411 6. 'Original cost' shall mean the actual cost of a new unit of equipment as determined by actual pur- chase 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 157 of the original cost. 411 Section 3. This ordinance shall be in full force and effect thirty days after its passage, approval and publication as provided by law and by the City Charter. PASS 1 BY THE CITY COUNCIL, signed and approved this day of , 1982. q■.A_AAA mat CAALIL--...0-! ay o r 410 ATTEST: /- C t y er II/ 411 -2-