HomeMy WebLinkAbout27 23 ' cc :. S
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JEFFERSON COUNTY
STATE OF WASHINGTON
IN THE MATTER OF APPROVING THE }
EQUIPMENT RENTAL AND REVOLVING } RESOLUTION NO. 27 23
FUND RENTAL RATES FOR THE 2023 }
CALENDAR YEAR }
WHEREAS, pursuant to Title 136 of the Washington Administrative Code (WAC), the
Washington State County Road Administration Board (CRAB) requires that all counties
make certain reports each year to ensure they are in compliance with the Standards of Good
Practice; and N
WHEREAS, pursuant to the Section 36.33A.040 of the Revised Code of Washington (RCW), w
the Jefferson County Central Services Director and Fleet Services Division shall administer the
Equipment Rental and Revolving (ER&R) Fund and shall be responsible for establishing the
terms and charges for the sale of any material or supplies which have been purchased,
maintained, or manufactured with monies from the fund. The terms and charges shall be set to
cover all costs of purchasing, storing, and distributing the materials or supplies, and may be
amended as considered necessary; and
WHEREAS, pursuant to RCW 36.33A.040, rates for the rental of equipment owned by the
fund shall be set to cover all costs of maintenance and repair, material and supplies consumed in
operating and maintaining the equipment, and the future replacement thereof; and
WHEREAS, a new Chapter 136-600 WAC, Equipment Rental and Revolving (ER&R) Fund,
was established to clarify duties, responsibilities, submittal requirements, and due date regarding the
administration of an equipment rental and revolving fund, effective March 7, 2022; and
WHEREAS, pursuant to WAC 136-600-050, rental rates of equipment shall be reviewed
annually by the county's legislative authority; and
WHEREAS, WAC 136-600-070 requires the County Engineer to submit the adopted county
road rental rates as of January 1st of that year to CRAB by April 1st of each year; and
WHEREAS, the Fleet Services Division of the Department of Central Services manages the
Equipment Rental and Revolving Fund in accordance with RCW 36.33A as a revolving internal-
service fund for road-maintenance vehicles, equipment and supplies as well as the vehicles and
equipment of other County departments that participate in the ER&R Fund; and
WHEREAS,the rental rates have been prepared utilizing current information available to the
Fleet Services Division of the Department of Central Services; and
WHEREAS, as prescribed by WAC 136-600-050, the rates for the rental of equipment owned
by the fund incorporate (1) estimated service life in years and service life remaining; (2) replacement
cost; (3) salvage value; (4) estimated operating and maintenance costs; (5) direct and indirect cost
of maintaining and operating facilities specific for ER&R equipment; and (6) ER&R program
administration; and
' t WHEREAS, as prescribed by WAC 136-600-050, the rental rates for county road equipment
' ' have been reviewed by the County Engineer and certified as an appropriate use of county road
funds as required by RCW 36.80.030; and
WHEREAS, the Jefferson County Board of Commissioners constitutes the legislative authority
of Jefferson County and deems adoption of these proposed rates to be in the best interest of the
County;
NOW, THEREFORE,BE IT RESOLVED the Jefferson County Board of Commissioners
hereby adopts the Equipment Rental and Revolving Fund rental rates for the 2023 calendar year
(January 1, 2023, through December 31, 2023) as shown in Exhibit A, which is attached hereto
and incorporated herein by reference, effective January 1, 2023; and
BE IT FURTHER RESOLVED that the Fleet Services Division of the Department of Central
Services abides by the internally-adopted"Equipment Rental& Revolving (ER&R) Fund
Management Policy" found in Exhibit B below.
APPROVED this ,day of J t t , 3�
Monte Reinders, P.E. Public Works ' r/County Engineer
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
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................... Heidi Eisenhour, Member
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Carolyn allaway, CMC
Clerk of the Board
Exhibit A: Equipment Rental and Revolving Fund Management Policy
Jefferson County, WA
Fleet Services Division - Central Services Department
TITLE: EQUIPMENT RENTAL & REVOLVING (ER&R) FUND MANAGEMENT POLICY
EFFECTIVE DATE: August 1, 2014
Section 1, Purpose
To provide funds for timely and efficient replacement of materials, vehicles, and equipment; and systems
and equipment used for maintaining vehicles and rental equipment
To formalize a policy consistent with applicable statutes on the level and components of Unrestricted
Net Current Assets and to outline the formula to be used in determining rental rates to assure
compliance with the desired level of Unrestricted Net Current Assets.
To maintain customer-department rental-rate stability.
This policy shall be signed and approved by the Central Services Director and may be updated at any
time as authorized by the Central Services Director.
Section 2, References
Revised Code of Washington, Chapter 36.33A, "Equipment Rental and Revolving Fund"
Revised Code of Washington, Chapter 43.09 Section 210, Local Government Accounting
Budgeting Accounting Reporting System (BARS) Manual, Office of State Auditor, Volume 1, Part 3,
Chapter 7
Miller Comprehensive Governmental GAAP Guide, current edition.
Equipment Rental & Revolving Fund Guidance, Washington State Auditor's Office
GASB Codification of Governmental Accounting and Financial Reporting Standards. Section 1300.104.
Section 3, Definition of Terms:
"Fleet", "Fleet Services" or "Fleet Services Division" is the Fleet Services Division of the Central Services
Department, sometimes known as "ER&R" due to its management of the Equipment Rental and
Revolving Fund.
"ER&R Fund" or the "Fund" is the revolving fund managed by the Fleet Services Division in accordance
with RCW 36.33A to provide for the operation, maintenance and replacement of certain fleet
equipment.
"Unrestricted Net Current Assets" means the difference between the total current assets and total
current liabilities of the fund. It represents the balance of all financial resources available for
current appropriation and expenditure after all revenues and expenditures have been accounted
for at the end of a given period. Unrestricted Net Current Assets shall contain three components:
' 3.1.a "Assets Earmarked for Parts, Supplies and/or Materials Inventories" means the amount
set aside and available for the replacement of parts, supplies and/or materials in the
Supplies Inventory asset account.
3.1.b "Assets Earmarked for Equipment Replacement" means the amount set aside and
available for planned capital improvements and replacements of existing systems and
equipment used in maintaining vehicles and equipment, such as automotive test
equipment, shop hoists, car wash facility, steam cleaner facility, etc.
3.1.c "Assets Earmarked for Capital Replacement and Improvement" means the amount set
aside and available for the replacement of vehicles and equipment.
"Rental Rate" means the amount charged to the using agency for the use of Equipment Rental and
Revolving Fund vehicles or equipment. The rentals may be charged to user agencies on an hourly,
daily or monthly basis consistent with RCW 36.33A. Rental Rates include, but are not limited to,
charges for maintenance and operating costs, overhead costs, equipment replacement, non-
operating revenues, and other adjustments.
"Maintenance and Operating Costs" means the costs of keeping the vehicle or equipment in operation. It
includes, but is not limited to, the costs of fuel, oil, tires and tubes, batteries, and all other parts
and labor expended in order to maintain and operate the fleet.
"Overhead Costs" means the costs expended for providing general management, administrative
activities, insurance, rent, utilities, support services in managing the fleet and County-wide
central service charges.
"Replacement Factor" means the amount charged in order to accumulate the anticipated cost of
replacing vehicles and equipment at the end of their economic life.
"Sale Proceeds" means the proceeds from the sale of surplus vehicles and equipment.
"Other Adjustments" are amounts added to or credited to the rental rate to cover deficiencies or
surpluses in the prior year's operations.
Section 4, Operation of the ER&R Fund
The ER&R Fund is a revolving fund. Moneys paid to the fund each year in the form of rent, replacement
factor, sale proceeds and other adjustments total a small percentage of the cost of replacing all
assets owned by the fund; these moneys are then used each year, in sum, to provide for the
replacement of the percentage of the assets owned by the fund for which replacement in that
year is necessary.
Each asset owned by the fund either must have itself been funded in full by its customer department or
must be a Fund-provided replacement for an earlier asset that was funded in full by its customer
department. The rent and other moneys paid to the fund by the customer department following
the provision of that asset are for the operation, maintenance, repair and replacement of the
asset (strictly excluding repayment of any first costs of procuring the asset).
Sufficient ER&R Fund balance must be maintained to provide for emergency and other contingency
situations and to provide stability and fluidity of asset replacement throughout each year.The
Fund balance will vary within each year as assets are replaced, put into service and removed from
service. The Fund balance will vary from year to year as assets of greater than average capital
cost are replaced or retained.
Assets comprising approximately 10.5%of the Fund's Equipment Replacement value should be replaced
annually, on average, given the asset inventory and lifecycle schedules in place at the time of the
adoption of this policy. The amount expended in any given year will depend heavily on whether
assets of greater than average capital cost are scheduled for replacement that year.
Rental rates shall cover all costs of maintenance and repair, material and supplies consumed in operating
and maintaining equipment, administrative and central services overhead and future
replacement.
The rental rate for each asset shall be charged beginning on the date the asset is issued to the customer
department and accepted by that department as properly configured for its use and ending on
the date the asset is surrendered to ER&R for disposal.
Hourly labor rates and mark-up rates on the supply of supplies, parts, fluids, fuel and any other service or
material furnished by the ER&R Fund shall cover all costs associated with the provision of those
services or materials. However, to provide budget stability for customer departments, labor and
mark-up rates may lag actual costs by the time sufficient to analyze a fiscal year's operations and
to prepare rates for approval by customer departments prior to their formation of their next
budget. Further, rates may be adjusted so as to include temporary or one-time costs or profits
over the course of more than one fiscal year so as to lessen variation in rental rates from year to
year.
Section 5, Unrestricted Net Current Assets
Unrestricted Net Current Assets must be no less than 25% of the lifetime accumulated depreciation for
all assets currently owned by the fund, as determined by the Working Capital Reserve
Recommendation for Each County Fund as adopted by the Board of County Commissioners
(County Resolution 65-13 or subsequent resolutions as replace it).
Unrestricted Net Current Assets and the lifetime accumulated depreciation for all assets currently owned
by the fund will be measured on the last day of each year for purposes of determining
compliance with Subsection 1 of this Section.
Fund assets are stored and invested under the control of the Jefferson County Treasurer.
Section 6, Agreements with Customer Departments
The manager of the Fleet Services Division shall annually propose to each customer department head an
agreement for services for the coming year.The agreement shall be signed by both parties
following negotiation and agreement as necessary.
Each agreement will detail the following:
6.1.a Fleet inventory assigned to the customer department;
6.1.b Rental rate or reimbursement terms for each assigned asset;
6.1.c Services to be provided by Fleet Services for each assigned asset;
6.1.d Costs and mark-up rates for anything provided by Fleet Services beyond the terms of the
agreement or provided in the case of any asset for which it is agreed the customer will
pay costs only;
6.1.e The assigned assets to be replaced during the year and the revised rental rate of each
replacement asset; and
6.1.f A summary of this policy as it applies to the relationship between Fleet Services and the
customer department.
The agreements will be reviewed and revised as needed during the year by mutual agreement of both
parties.
Section 7, Equipment Purchase
Fleet Services will purchase replacement and additional fleet assets after consultation with each
respective customer department.
Asset purchases will prioritize, roughly in order of important,the following considerations:
7.1.a Safety of operation in intended application;
7.1.b Suitability for intended application;
7.1.c Anticipated efficiency in intended application
7.1.d Projected rental cost based on all known factors;
7.1.e Ability to reduce petroleum usage; and
7.1.f Availability of existing contract usable for purchase.
Replacement units will be purchased according to schedules determined by Fleet Services with the
concurrence of each respective customer department; the impact to the customer department's
operating budget must be considered, and the manager of Fleet Services shall estimate during
each budgeting process the estimated changes to rental rates for each customer department
during the next budget year as a result of planned asset replacements in accordance with
Subsection 6.2.e.
Any asset that would be an addition to the fleet rather than a replacement of an existing unit to be
removed from service must be funded in accordance with Subsection 4.2 or 4.3. Any department
requesting such an addition must have sufficient approved capital and ongoing funding to finance
the initial and ongoing costs of the additional asset.
Section 8, Rental Plan Options
Costs only: No regular rental will be billed. Maintenance, repair and/or fuel costs must billed at mark-up
rates as established and revised. Unit replacement at end of life is not provided. Resale proceeds
are returned to owning department. The availability of this type of rental plan is limited to those
units owned by customer departments and not by the ER&R fund.
Full rental: Periodic rental rate will be billed to cover depreciation, replacement factor, maintenance,
repair and fuel costs. Rental rate must be adjusted annually to keep pace with changes in
replacement cost or lifecycle and to reflect actual operational costs. Costs of major accidents may
be paid separately by the customer department or may be included in the revised rental rates.
Hybrid rental plans: Unique and legacy rental arrangements may be mutually agreed upon by Fleet
Services and the customer department.
Section 9, Determination of Rental Rates
The following costs shall be included in the rental rate, where applicable to the chosen rental plan option
(see Section 8):
9.1.a Operating and maintenance costs shall be determined by using the most recent cost
information available for the preceding twelve months plus a factor using comparable
data, if available, for any anticipated increase in costs due to increasing asset age. For
vehicles or equipment with no cost history, the manager of Fleet Services shall develop an
estimate using whatever indices or comparable data are available.
9.1.b Fuel costs shall be determined by using the most recent usage information available for
the preceding twelve months and multiplying it by anticipated per-gallon costs for the
coming year (available from U.S. DOE EIA or commercial sources). For vehicles or
equipment with no usage history, the manager of Fleet Services shall develop an estimate
using comparable data or the usage history of the asset replaced by the one in question.
9.1.c Initial periodic replacement charges for vehicles and equipment shall be computed by
dividing asset purchase cost by the projected number of periods in the life of the asset.
Asset replacement cost shall be updated to current actual cost annually, and periodic
replacement charges adjusted accordingly. For all future purchases, asset purchase cost
shall include all costs of obtaining the asset and configuring it for service as required by
the customer department, including customization and upfitting.
The following costs shall be excluded from the rental rate, not charged to the ER&R fund nor paid by
Fleet Services, and instead shall be paid directly or charged to the respective customer
department:
9.1.d Traffic and parking fines;
9.1.e Parking fees;
9.1.f Tolls and ferry fees;
9.1.g Collision insurance;
9.1.h Replacement and repair costs due to major damage; and
9.1.i Costs due to loss, fraud,waste, misuse or abuse on the part of any customer department's
employee where such cost results from failure on the part of the customer department to
monitor and control its employee's usage of fleet assets or supplies or where the loss of
any key, access card or PIN used to perpetrate the loss or fraud is not immediately
reported to Fleet Services.
The residual or resale value of any asset shall be included in the rental rate as a deduction. This value
shall be estimated initially and revised at the time of the equipment's disposal or removal from
the fleet inventory and may also be revised periodically if conditions warrant. The initial estimate
may be any reasonable figure, typically 10%of the original purchase cost.
The replacement factor shall be added to the rental rate. This factor should, in general, account for
inflation of approximately 2%, compounded annually, on the initial purchase cost of the asset.
The replacement factor may also be revised periodically if conditions warrant, such as when the
customer department chooses a different type of replacement or in the case of very long
lifecycles where such a blanket estimate is inadequate.
The manager of the Fleet Services Division shall periodically estimate end-of-life profit or loss for each
asset and propose adjustments to rental rates as necessary to ensure the ER&R Fund is neither
accumulating excess rental revenue nor suffering a shortfall for any asset.
Rental rates established pursuant to this policy shall be subject to annual review by the County
Commission; this typically occurs through the County's normal annual budgeting process.
Section 10, Options for Normal Termination of Rental
Unit no longer needed and no replacement needed: The unit to be retired will be disposed of. Assuming
depreciation and replacement costs were paid during the rental of the unit, rental income in
excess of operational costs shall be returned to the original customer department. Asset files will
be marked with a clear indication that the unit was not replaced and that the funds allocated for
replacement had been returned to the customer department.
Replacement of like kind needed: Replacement unit will be procured; retired unit will be disposed of.
Settlement of the assets accounts will occur between Fleet Services and the customer
department. Both asset files will be marked with a clear indication that the unit was replaced by
the replacement unit, including both asset numbers.
Replacement of non-like kind needed: Fleet Services will prepare an estimation of the Replacement unit
will be procured; retired unit will be disposed of. Settlement of the assets' accounts will occur
between Fleet Services and the customer department.
Section 11, Options for Early Termination of Rental
Unit no longer needed or its operation no longer funded and no replacement needed: Another
customer department may assume the rental and use of the unit, or the unit may be sold at
surplus auction. Settlement of the assets accounts will occur between Fleet Services and the
customer department.
Unit damaged beyond repair and no replacement needed: Same as Subsection 1 of this Section.
Unit damaged beyond repair and replacement needed: Customer department may pay separately the
sudden depreciation and additional replacement factor necessary to replace the vehicle. Instead,
customer may choose to continue after the replacement of the vehicle paying the depreciation
and replacement factor left deficient at the time of the vehicle's damage. In no case shall
outstanding depreciation and replacement costs be added to the rental rate of the replacement
or any other vehicle; however, the option of the customer department continuing to pay the
capital costs of a vehicle that is no longer in operation has much the same budgetary impact.
Section 12, Equipment Disposal
Public surplus auction: Sale proceeds used in place of projected residual value to determine lifecycle
costs and profit/loss of the replaced vehicle.
12.1.a In no case will any surplus asset be sold to the manager of Fleet Services,to any county
employee responsible for administering the sale of the asset, nor to any immediate family
member thereof.
12.1.b No surplus asset will be sold to any employee of Fleet Services, to any county employee
who was a regularly assigned driver or operator of the asset, to any county employee who
was the manager or supervisor responsible for the use of the asset, nor to any immediate
family member of any of the above, except if the following conditions are met:
(i) a full and accurate accounting of all maintenance, repair, upgrades and all other
actions taken within the twenty-four months preceding the County's offering of the
asset for sale must be clearly detailed in writing and available for inspection by any
interested buyer at all times the asset is otherwise available for inspection; and
(ii) the sale of the asset must be clearly advertised in the same manner as other assets of
its type during any given offering for sale.
Second use: Sale to customer department (first right of refusal) or to another customer department.
Settlement of lifecycle costs with original customer department will use published index based on
condition or actual sale prices from similar units to determine residual value. Rental to new
customer department will consist either of a one-time payment of that residual value or a short-
term rental contract based on that residual value if part of a rotating cycle of second-life vehicle
rentals. Transfer to any subsequent department will follow the same procedure. Provided this
procedure has been followed and the preceding department(s) compensated for the residual
value of the unit at the time of transfer,the sale proceeds after the final assignment of the unit
will be designated to the final department assigned the unit for purposes of asset account
settlement.
Section 13, Settling Asset Accounts
The amount of rental income allocated to an asset shall be settled or balanced to ensure the ER&R Fund
neither gains nor loses funding through its providing and managing the asset in accordance with
RCW 43.09.210, which requires, in part,that "...All service rendered by ... one department ... to
another, shall be paid for at its true and full value by the department ... receiving the same, and
no department ... shall benefit in any financial manner whatever by an appropriation or fund
made for the support of another...."
The manager of the Fleet Services Division and the customer department head may find that the
adjustment of rental rates has been neglected in the case of one or more assets assigned to that
department, causing those assets to accumulate considerable life-to-date or projected end-of-life
loss or gain. If this loss or gain is greater than what can be negated reasonably and quickly
through the adjustment of rental rates, one or more of the following actions should be taken:
13.1.a In the case of life-to-date or projected end-of-life loss by the ER&R Fund for any one asset,
the customer department may provide a one-time transfer of funds to balance the
account, with or without an accompanying increase in rental rate;
13.1.b In the case of life-to-date or projected end-of-life gain by the ER&R Fund for any one
asset,the ER&R Fund may provide a one-time transfer of funds to the customer
department to return the excess, with or without an accompanying decrease in rental
rate; or
13.1.c In the case of life-to-date or projected end-of-life gains and losses by the ER&R Fund for a
group of assets in any one customer department where the sum gain or loss is relatively
minimal, the assets showing gains may be debited and the assets showing losses credited
in equal amounts so that each asset's account is balanced.
This settling shall occur at the end of each asset's life following disposal and may also occur periodically if
conditions warrant.
•
In the case of accident or other unusually expensive damage causing a one-time loss for any one asset,
the customer department may provide a one-time transfer of funds to balance the account. (See
Subsection 7.3 and Subsection 9.3 for additional detail.)
At the time an asset is retired, removed from service and disposed of,the manager of Fleet Services shall
prepare a report of the asset's fund credits and debits and shall furnish the report to the
customer department head. The asset's account shall be settled as close to $0.00 as reasonably
possible (without needlessly costly accounting exercises) using one of the methods described in
Subsections 2.a through 2.c of this Section.
At the time an asset is sold or otherwise transferred to another customer department, the manager of
Fleet Services shall prepare a report of the asset's fund credits and debits and shall furnish the
report to the customer department head. The asset's account shall be settled as close to $0.00 as
reasonably possible (without needlessly costly accounting exercises) using one of the methods
described in Subsections 2.a through 2.c of this Section.
Section 14, Fleet Services Operations and Billing
All time for which Fleet Services Staff are compensated, all parts issued and all fuel and fluid dispensed
will be billed to the appropriate accounting codes, whether to individual fleet assets, to
departmental asset accounts or to indirect codes internal to Fleet Services funds. Rates will
reflect the following additional costs:
14.1.a Labor rates billed will be at a rate that includes all benefits, indirect time, facility costs,
mechanical shop and service costs, administrative and support services and other
overhead costs attributable in general to the services provided by Fleet Services;
14.1.b Parts mark-up rates will be calculated to include all costs incumbent in ordering, stocking
and dispensing stocked and special-order parts; and
14.1.c Fuel mark-up rates will be calculated to include all costs of operation of the fuel sites.
Fleet Services shall evaluate general work categories and individual instances of repair work and will
either perform the tasks in house or outsource them, whichever is, in the judgment of Fleet
Services, most economical, efficient and effective.
Fleet Services will strive to consolidate orders of vehicles, equipment, fuels, fluids, parts and services,
and to limit diversity within the fleet to the minimum necessary to support customer operations,
preserve competition and maintaining a diverse, competitive and flexible supplier base. Fleet
Services' goal in this area shall be to enhance consistency within the fleet.
While complying with all applicable purchasing laws, Fleet Services will use the most economical and
competitive methods of procuring vehicles, equipment, fuels, fluids, parts and services. Such
methods may include use of Washington State Department of Enterprise Services contracts,
cooperative procurement with other county or municipal entities and the standard procurement
processes of Jefferson County.
Fleet Services will maintain and operate a data system designed for and capable of tracking, monitoring
and reporting comprehensive information on the costs and usage of all fleet assets. Fleet Services
will make such information and analysis as is requested available to its customer departments
upon request.
Exhibit B: Fleet Services Customer Agreement & Rental Rates
Jefferson County, WA (January 1 - December 31, 2023)
Fleet Services Division - Central Services Department
2023 Fleet Services Customer Agreement Scheduled shop labor rate: $105.00 per hour
In accordance with the terms of the ER&R Fund Management Policy and the asset details shown on the
following page(s), Fleet Services and its customer agree that Fleet Services will provide maintenance, repair
and replacement services for one or more of the fleet assets shown on the following page(s) in exchange for
the payment by the customer department of the rental amount listed for each asset. A summary of the terms
and conditions follows. Please request a copy of the Department of Central Services ER&R Fund Management
Policy for further details on the management of the ER&R fund by Fleet Services.
Services to be provided
Services provided or reimbursed will include purchase, disposal at auction, in-house maintenance and repair,
in-house fuel sales,contracted maintenance and repair,contracted vehicle washing,outside fuel sales,towing,
road service and any other service (other than general driving and related responsibilities) necessary for the
maintenance and operation of fleet assets.
Costs of providing services to be tracked
The costs of these services will be tracked by Fleet Services individually to each asset. Costs will be billed at
above labor rate for shop labor and at actual costs plus mark-up rates for fuel, parts, fluids and subcontracted
repairs. Rates are analyzed annually and revised periodically to ensure Fleet Services' accounting is inclusive
of all costs of providing these services.
Rental rates to be charged
The customer will reimburse the ER&R fund for the costs of these services and future replacement costs of
each asset, where applicable, at the exact costs calculated periodically by Fleet Services. Fleet Services and
the customer will agree upon rental charges that accurately reflect asset costs while seeking rent stability for
each asset and for the customer's entire fleet expenditure. Fleet Services and the customer department agree
to follow the letter and spirit of the following excerpt from RCW 43.09.210:
...All service rendered by ... one department ... to another, shall be paid for at its true and full value by the
department... receiving the same, and no department... shall benefit in any financial manner whatever by an
appropriation or fund made for the support of another....
Reimbursement will be through the payment of periodic or irregular rental fees. Rental rates are proposed by
Fleet Services and agreed to by the customer department prior to the purchase of any replacement or
additional asset, except that rental rates are revised by mutual agreement of the Fleet Services and the
customer department when warranted by operational changes or accumulated profit or loss by the ER&R fund
on account of any particular asset. The attached page(s) list the anticipated rental rates for the customer's
assigned fleet. Depending on the department/division, the listed rental rates may include monthly rates and
hybrid rates that combine monthly fixed costs with hourly cost accounting.
•
Replacement of assets
Planned replacements are specifically noted in this agreement along with a proposed rental rate for the new asset.
Unplanned replacements and changes to planned replacements may be added to this agreement by mutual agreement
of Fleet and the customer department. Assets comprising approximately 10.5% of the fund's equipment-replacement
value are to be replaced each year, but this is an average for all customers of the fund - replacements vary annually for
each customer.
Addition of assets
Any additional asset or upgrade to an existing asset must be budgeted and funded by its customer department, along
with any corresponding increase in ongoing rent. Customer departments will notify Fleet Services of any planned
additions to the fleet.
Final balancing of asset account
Each asset removed from the fleet, whether or not it is replaced, will have its account balanced once all relevant
transactions have been recorded. The result for each asset will be that all costs to the ER&R fund for the asset are
covered by the accumulated rental charges without any profit accumulating to the ER&R Fund. Fleet Services will, for
each such asset, present the customer department with a statement of the asset's lifetime charges and payments and
will initiate any transaction necessary to credit or debit over- or under-paid rent, respectively, to the customer
department.
Supplies and services for assets not subject to regular rental rates
Supplies and services provided by Fleet Services for any asset for which a rental rate for that purpose is not proposed
on the following page(s) for payment by the customer will be invoiced to the customer monthly at the same labor and
mark-up rates used to track costs for rental assets.
Verified for Fleet Services by(signature and date): Acce for customer si nature,date and title):
fie a Ices Division
- , ;
Anticipated replacements and other changes in 2023
Replace 0601 with 0999,Rent Decrease$1900 to$1600.
Replace 075E With 1005,Rat Increase S2500to S2600.
Replace 0606 With 1004,Real Decrease SI 500 to$465.
Replace 0715 With 1013,Rent Increase$550 to S750.
Additional Trailer 1014 Rent S600.
Replace 0785 With 1009,Rent Increase$900 to S 1800.
Additional Plate Compactors 1015/1016 Rent S105/11S.
Replace 0673 Witt 1017,Rent baease$2495 to$2700.
Replace0766 With 1018,Rent Decrease S800 to S550.
Additlonal F250 Rent S1500.
Replace 0612 Rent Decrease S 1150 to$1000
Replace 0829/0830 Rent Increase S885/885 to S 1500►1500.
Replace 0127 Rent Decrease$1650 to$950.
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JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of Commissioners
FROM: Chris Goy, Central Services Director/Deputy County Administrator
DATE: July 3, 2023
SUBJECT: RESOLUTION re: Annual County Road Administration Board (CRAB)-
2023 ER&R Rental Rates for Public Works Roads Equipment
STATEMENT OF ISSUE:
The Washington State County Road Administration Board (CRAB) requires Jefferson County
to comply with Washington Administrative Code (WAC) 136-600-070, WAC 136-600-050,
and Revised Code of Washington (RCW) 36.80.030 in order to remain eligible for critically-
needed funds disbursed by CRAB for County road maintenance.
ANALYSIS:
CRAB has adopted rules in order for counties to remain eligible for annual road maintenance
funds with respect to Equipment Rental & Revolving (ER&R) Funds. By April 1st of each
year, CRAB is now requiring each county engineer to submit the following documents in the
form of standalone legislation:
1) Adopted county road rental rates as of January 1st of that year;
2) The resolution of the legislative authority adopting said rates;
3) ER&R Management Policy
FISCAL IMPACT:
Zero dollars ($0.00).
RECOMMENDATION:
This resolution will enable the County Engineer to comply with relevant WAC and RCW
language necessary for Jefferson County's annual submittal to CRAB. Going forward, it is
recommended that, as part of the annual budget process, an updated version of the attached
resolution be enacted to remain in compliance well in advance of CRAB's annual April 1st
deadline.
REVIEWED BY:
,2
�,,1� 3
Mark McCa $ , County Administrator s ate