HomeMy WebLinkAboutUtilities 2013-12-02 Item 2B - Ordinance - Equipment Rental Fund Update (TMC 3.80)TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Utilities Committee
FROM: Bob Giberson, Public Works Directo
BY: Gail Labanara, Public Works Analyst
DATE: November 27, 2013
SUBJECT: Ordinance to Update Equipment Rental Fund 501
Tukwila Municipal Code Chapter 3.80
ISSUE
The Equipment Rental Fund Ordinance requires updating to reflect current procedures,.
BACKGROUND
The Equipment Rental Fund Ordinance No. 1309 was established in 1983 as state law RCW
35.21.088 requires that every city with a population over 8,000 should establish an Equipment
Rental Fund. Ordinance No. 1309 included the initial funds needed to contribute for the Equipment
Rental revolving account and the ability to charge the home unit on a monthly basis for depreciation
and maintenance. The initial ordinance included all City vehicles except for Fire Department
pumpers and ladder trucks.: Ordinance No. 1309 no longer reflects the current City procedures
under the Vehicle /Equipment Procurement and Replacement Policy 900 -05.
DISCUSSION
The draft Ordinance will update the current policies and practices for the Equipment Rental and
Replacement Fund. Ordinance No. 1309 will still stand as a historical document for the
establishment of the Fund. The main changes to the Ordinance include;
• Covers full replacement of the vehicle (not just a depreciation schedule)
• All City vehicles are now included, specifically Fire pumpers and ladder trucks
• For each biennial budget, staff will include a full review of each department's fleet
requirements and criteria for replacement, which will vary depending on best practices,
type of equipment, and meeting the operational needs of the home unit.
• Additional funding can be added to the Equipment Rental and Replacement Fund, which
will enable each department to obtain the equipment that is needed to "right size" our City
fleet as well as stabilize the funding for the replacement.
RECOMMENDATION
The Council is being asked to approve the Ordinance amending Tukwila Municipal Code Chapter
3.80 for the Equipment Rental and Replacement Fund and consider this item at the December 9,
2013 Committee of the Whole Meeting and the Special Meeting that same night.
Attachments: Draft Equipment Rental & Replacement Fund Ordinance
Ordinance No. 1309
Vehicle /Equipment Procurement and Replacement Policy 900 -05
z \public works °%equpment rental tf&eett,nfo memo ordnance no 7309,doc
49
AFT
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1309,
AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 3.80;
REENACTING TUKWILA MUNICIPAL CODE CHAPTER 3.80 AS
"EQUIPMENT RENTAL AND REPLACEMENT FUND" TO
UPDATE COVERED EQUIPMENT AND METHOD OF
REPLACEMENT FUNDING; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, pursuant to state law, RCW 35.21.088, every city having a population
of more than 8,000 shall establish an equipment rental fund; and
WHEREAS, the City of Tukwila desires to fund for replacement of City vehicles and
related equipment; and
WHEREAS, the City desires to establish replacement criteria and an orderly
schedule of replacing necessary City vehicles and related equipment; and
WHEREAS, an update is required to accurately reflect current policies and
practices;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Tukwila Municipal Code (TMC) Chapter 3.80 is hereby reenacted to
read as follows:
CHAPTER 3.80
EQUIPMENT RENTAL AND REPLACEMENT FUND
Sections:
3.80.010 Established
3.80.020 Purpose of Fund
3.80.030 Sources of Revenue
3.80.040 Rental Rates
3.80.050 Administration
3.80.060 Reporting and Review
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Section 2. TMC Section 3.80.010 is hereby reenacted to read as follows:
3.80.010 Established
The fund is to be known as the Equipment Rental and Replacement (ER&R) Fund,
pursuant to RCW 35.21.088, for the purpose of operations, supplies, repairs,
maintenance, and replacement of the City's vehicles and related equipment.
Section 3. TMC Section 3.80.020 is hereby reenacted to read as follows:
3.80.020 Purpose of Fund
The purpose of the Equipment Rental and Replacement Fund shall be for the
control, operation, and maintenance of the City's fleet equipment, and for the rental of
such equipment to the various City departments at rates sufficient to meet the costs of
operation and to provide funds for acquisition and replacement of covered equipment.
Equipment in the ER &R Fund must have a replacement value of at least $5,000. AN
City vehicles will be included, as well as other equipment that meets the value threshold
and requires maintenance by the Public Works Department's Fleet Division.
Section 4. TMC Section 3.80.030 is hereby reenacted to read as follows:
3.80.030 Sources of Revenue
A. The Equipment Rental and Replacement Fund shall obtain its funding by any of
the following:
1. Direct appropriation in the biennial budget;
2. Budget transfer made by ordinance from other funds of the City;
3. From proceeds received from the rental of any equipment owned by the
fund to other departments, offices, or funds of the City. This shall include transfers from
other funds or direct payment of amounts received for the use of such equipment on
reimbursable projects performed by the City;
4. From the sale of any equipment in the ER &R Fund.
B. The funds included in the Equipment Rental Fund for the origination of the
system were detailed in City of Tukwila Ordinance No. 1309, as well as calculations
related to valuations of the existing equipment at the time of the creation of the
Equipment Rental Fund.
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Section 5. TMC Section 3.80.040 is hereby reenacted to read as follows:
3.80.040 Rental Rates
A. The administrator of the. ER &R Fund or designee shall establish a schedule of
reasonable rental rates and other charges sufficient to cover the maintenance,
operation, and replacement of the equipment. The rates shall take into consideration
the costs of operating supplies, maintenance expenses, insurance, depreciation, and
other direct and indirect costs. There shall be a contingency for the purpose of adding
additional equipment and replacement of old equipment, including shop and
administrative equipment and other items that may be reasonable or necessary in the
operation of the ER &R Fund.
B. The annual equipment replacement charge will be determined by dividing
estimated years of life into the estimated purchase price and charging the home unit on
a monthly basis. Shared equipment may be charged on a pro rata share basis.
C. Replacement exceptions occur when the replacement item is over 10 percent
of the estimated cost. The home unit is then responsible to fund the difference or, if an
addition to the fleet is proposed, the home unit will fund the entire initial purchase.
Departments will also have the ability to set aside funds for future purchases, enhancing
the ability to plan for additional capital equipment fleet requirements. These processes
will be accomplished through the ER &R transfer procedures.
Section 6. TMC Section 3.80.050 is hereby reenacted to read as follows:
3.80.050 Administration
The Public Works Department will maintain the assigned equipment and provide
the detailed records for the equipment replacement plan. All labor, materials, repairs,
replacements and other costs will flow through this system and provide the basis for
reporting. In addition, because this is a proprietary fund, it will be maintained in a
manner similar to the Water and Sewer Funds. Reconciliation with the Finance
Department will occur annually by the last day of February, following the close of the
fiscal year.
Section 7. TMC Section 3.80.060 is hereby created to read as follows:
3.80.060 Reporting and Review
An equipment replacement plan will be approved in each adopted budget. Criteria
for replacement will vary depending on fleet management best practices, type of
equipment, and meeting the operational needs of the home unit.
Section 8. Repealer. Ordinance No. 1309 is hereby repealed.
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Section 9. Corrections by City Clerk or Code Reviser. Upon approval of the
City Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this, including the correction of clerical errors; references to other local,
state or federal laws, codes, rules, or regulations; or ordinance numbering and
section /subsection numbering.
Section 10. Severability. If any section, subsection, paragraph, sentence, clause
or phrase of this ordinance or its application to any person or situation should be held to
be invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 11. Effective Date. This ordinance or a summary thereof shall be
published in the official newspaper of the City, and shall take effect and be in full force
five days after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWJLA, WASHINGTON, at
a Special Meeting thereof this day of , 2013.
ATTEST /AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council:
Published:
Effective Date:
Ordinance Number:
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CITY OF TUKWILA
WASHINGTON
ORDINANCE Na _13 079
AN ORDINANCE OF THE CITY OF TUKWILA, WASHINGTON,
CREATING AND ESTABLISHING A SPECIAL FUND TO BE
KNOWN AS THE EQUIPMENT RENTAL FUND (501) TO BE
USED AS A REVOLVING FUND FOR OPERATIONS, SUPPLIES,
REPAIRS, AND FOR REPLACEM1NT OF THE CITY'S VEHI-
CLES AND RELATED EQUIPMENT.
WHEREAS, the City of Tukwila desires to fund for depreciation
of City vehicles and related equipment, and
WHEREAS, the City also. desires to provide accurate costs for
its operating departments, and
WHEREAS, the City desires to establish, replacement criteria
and an orderly schedule of City vehicles and related equipment replace-
ment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASNINGT00, DO ORDAIN AS FOLLOWS:
Section 1. That there is hereby established and created a
special revolving fund to be known as the Equipment Rental Fund pursuant to
RCW 35.21.033 for the purpose of operations, supplies, repairs, and replace-
ment and maintenance of the City's vehicles and related equipment.
Section 2. Equipment in the fund must have a replacement value
of at least 7,000. Equipment from the Current, Street, Golf, Water and
Sewer Funds will he included. All vehicles except Fire Department pumpers
and ladder trucks will be included. Data processing equipment alarm systems,
buildings or playground equipment are not ineluded. See Attachment "A" for
items in the Fund as of January 1 1934.
Section 3. The funds included in the Equipment Rental Fund will
contribute an initial amount and equipment per the schedule] on Attachment
"A" over a three-year period (includes interest at 10% per annum on balance
owing.)
1904 1985 1986 Total
Current 107,500 110,000 101,640 319,140
Golf 47,000 30,000 24,475 101,475
Street 43,500 40,000] 37,675 121,175
Water 10,000 10,000 9,000 29,000
Sewer 1100 _ 11,000 12 000 34 000
TOTALS 219,000 201,000 134,790 604,790
The initial contribution calculation' includes depreciation through
3/31/83, interest to be earned until scheduled replacement, and expected
salvage value.
The annual equipment replacement charge will be determined by
dividing estimated years of life into purchase price and charging the
"home unit" on a monthly basis. When a unit other than the home unit uses
the equipment, the using unit is charged and the home unit credited.
Replacement exceptions occur when the replacement item is a plus
or minus teni percent, the home unit is responsible to fund the difference or
conversely receive a credit; or if a brand new item is proposed, the home
unit will fund the entire initial purchase,
54
Page 2
The operation and maintenance cost for each piece of equipment in the fund
will be borne by the home units. Direct costs will be charged to each piece
of equipment along with a loading factor which will cover all indirect costs.
SECTION 4. The Public Works Department will operate and
maintain the assigned equipment and provide the detailed records for the
Program. The Finance Department will maintain the present Job Cost Systems,
along with a few program adjustments, which will provide a complete accounting
system for the Program. All labor, materials, repairs, replacements and other
costs will flow through this system and provide the basis for reporting. In
addition, because this is a 'Proprietary Fund", it will be maintained very
similar to the Water and Sewer Funds.
SECTION 5. An equipment replacement plan will be approved in
each years adopted budget. Criteria for replacement will vary depending on type
of equipment.
SECTION 6. This ordinance shall be effective on the first day
of January, 1984.
L.?? ,
PASSED BY THE CITY COUNCIL OF THE CITY OF 717A, WASHINGTON,
at a regular meeting thereof this day of 1983.
Approved as to FOTM:
Danie
00, Cl ty
ttorney
ATTEST:
a in Anderson, City Clerk
Published, Record Chronicle - December 26, 1983
Record Chronicle - January 6, 1984, Republished due to editing error.
55
ATTACHMENT A, PAGE 1
(1)
A T T A C H M E N T A
EQUIPMENT RENTAL WORKSHEET
(2) (3) (4) (5) (6)
Year Depreciation Val ue Estimated
Year Equipment Vehicle To Be Original thru on Replacement
Purchased Description Number Replaced Cost 12/31/83 1/1/84 Cost
(7) (8) (9)
Contribution Home
1984
Equipment
Ca.ital Unit Rol. Charge
CURRENT FUND - POLICE
- -- New (replace 95) --
1981 Toyota 4 -Door 84
1980 Toyota Lift Back 85
1976 Dodge Dart 93
1975 Dodge Dart 99
1983 Dodge Diplomat 86
1983 Dodge Diplomat 87
1980 Dodge 89
1930 Dodge 96
1981 Chevrolet 97
1979 Dodge St. Regis K-9 98
1982 Dodge Diplomat 100
1977 Pontiac 88
1978 Kawasaki 388
1978 Kawasaki 389
1982 Kawasaki 442
SUBTOTALS
1984 -0- -0- -0- 7,500
1988 5,856 2,501 3,355 8,500
1987 5,585 3,205 2,380 9,000
1984 4,330 4,330 -0- 7,500
1985 4,000 3,600 400 8,000
1986 8,679 2,899 5,780 13,900
1986 8,679 2,899 5,780 13,000
1984 6,706 6,706 -0- 11,000
1984 6,706 6,706 -0- 11,000
1985 8,687 6,517 2,170 12,000
1984 6,499 6,499 -0- 11,000
1985 8,424 6,514 1,910 12,000
1984 4,931 4,931 -0- 7,500
1985 4,327 3,727 600 6,500
1984 4,706 4,706 -0- 6,000
1987 5,462 2,182 3,280 7,000
93,577 67,922 25,655 61,500*
7,500 Adrnin. 935
4,500 Invest. 835
4,500 Invest. 800
6,500 Invest. 500
6,000 Invest. 400
9,500 Patrol 2,890
9,500 Patrol 2,890
10,009 Patrol 2,750
10,000 Patrol 2,750
9,000 Patrol 2,170
10,000 Patrol 2,750
9,000 Patrol 1,910
6,590 Crime Prev. 500
5,000 Traffic 600
5,000 Traffic 1,500
4,000 Traffic 1,090
116,500 25,270
CURRENT FUND - EIRE
1978 01dsmo bile 501 1988 7,300 4,380 2,920 14,000 8,000 Admin. 585
1983 Chevrolet 514 1993 9,055 905 8,150 16,000 4,000 Prevention 1,015
1976 Dodge Pickup 503 1986 5,500 est. 4,400 1,100 11,000 7,090 Prevention 550
1980 Dodge 4 -WD Pickup 504 1990 8,713 3,483 5,230 16,000 6,500 Training 870
1978 GMC Aid Car 508 1986 25,000 18,750 6,250 60,000 41,000 Emer. Serv. 2,085
SUBTOTALS
01
rn
55,568 31,918 23,650
66,500 5,015
ATTACHMENT A, PAGE 2
Year Equipment
Purchased Description
CURRENT FUND - PUBLIC WORKS
E Q U I P M E N T R E N T A L W O R K S H E E T
(2) (3)
Year
Vehicle To Be Original
Number Re .laced Cos
(4) (5) '(6)
Depreciation Value Estimated
thru on Replacement Contribution
12/31/83 1/1/84 Cost Capl
(7)
(8)
Home
1980 AMC Concord 1 1990 5,280 2,120 3 3,160 10,000 4,500 Admin.
1980 AMC Concord 2 1990 5,280 2,120 3,160 10,000 4,500 Admin.
1977 Pontiac 25 1985 5,000 4,380 620 7,700 5,50 0 :ng.
1974 Dodge 1/2 Ton Van 21 1985 3,500 3,150 350 11,000 8,500 Eng.
1971 Chevrolet 1/2 Ton Van 5 1984 2,800 2,800 -0- 10,000 9,000 Bldg. Maint,
1975 Dodge 3/4 Pickup 18 1985 4,200 3,780 420 9,000 6,800 Park
1979 Dodge e/4 Pickup 20 1989 5,841 2,921 920 11,000 4,000 Park
1974 J. C. Penny Mower 61 1984 1,900 1,900 -0- ? 12,000 11,000 Park
1977 John Deer Mower 64 1987 2,400 1,680 720 12,000 7,500 Park
1980 Jacobsen Mower 70 1990 11,228 4,488 6,740 17,000 4,000 Park
1980 Snowco Trailer 70 1990 2,700 720 1,980 4,000 6 500 Park
01
SUBTOTALS.
CURRENT FUND - RECREATION
1974 Dodge 1 Ton Van 22 1984 6,000 I 5,000 -0- 12,000
1976 Dodge 1 Ton Van 23 1984 6,300 ° 6,300 -0- 12,000
1977 Pontiac LeMans 24 1985 4,931 4,321 610 7,700
50,129 ! 39,059 20,070 I 22,000 *
SUBTOTALS { 17,231 [ 16,621 610 24,000 *
RRENT FUND - PLANNING
1980 Datsun Pickup
CURRENT FUND - ADMINISTRATION
1975 AMC Hornet 7 1987
1975 Dodge Dart 10 1985
SUBTOTALS
6
1988 j 6,000 3,000 J 3,000
9,000
CURRENT FUND TOTALS
4,500
4,000
65,800
11,000
11,000
5,500
27,500
Recreation
Recreation
Recreation
3,000 Building
(9)
1984
Equipment
Repl. Charge
525
525
620
350
500
420
585
650
240
1,125
330
7
690
690
610
1,990
750
1,125 9,000 6,500 Mayor 375
400 7,700 5,700 Mayor 400
1,525 12,200 775
3,600
8,500
6,975
231,005 156,495
74,510 1 107,500 * 291,500
39,670
ATTACHMENT A, PAGE 3
Year Equi pment
Purchased Description
REET
DUI P t1T RENTAL
(2) (3)
Year
Vehicle To Be Original
Number Re 4l aced Cost
1968 2 Ton Chev. Manlift 4
1977 Dodge 3/4 Ton Pickup 9
1980 Dodge 1 Ton Dump Truck 15
1973 Chev 1 Ton Dump Truck 16
1982 Ford 2 Ton Dump Truck 28
1972 J. D. 500 Backhoe 50
1973 J. D. Mower /Loader 52
1980 Mobile Sweeper 60
1975 Asphalt Spreader 69
1973 Pacific Pump a Tank 72
New Paint Striper
New 5 -Ton Roller
New Fault Detector
TOTAL STREET
GOLF COURSE
1974 Ford Courier Pickup 14
1977 Cushman Scooter 505
1978 Jacobson Mower 107
1978 Greens Mower - Jacobson 108
1983 Greenaire Aeriator 117
Turf Vac 118
1983 Greens Mower - Toro 123
1983 Top Dresser 124
Yazoo Rotary Mower 111
1953 Ford Tractor 109
1953 Ford Tractor 11
Ryan Sod Cutter 112
Spray Tank 116
West Point Aeriator 119
TOTAL GOLF COURSE
01
co
(4)
Depreciation
2
(5) (6) (7)
Value Estimated
on Replacement Contribution Horne
/1/84 Cost Ca al Unit
1988 22,000
1987 5,037
1990 11,211
1984 3,000
1992 13,602
1987 10,000
1988 6,000
1995 1 65,000
1990 6,482
1988 1,200
1984
1984
1984
3,532
0,000 12,000 i 30,000 10,000 Street
3,537 1,500 10,000 5,000 Street
4,481 [ 6,730 20,000 5,000 Street
3,000 -0- 15,000 13,000 Street
2,722 10,880 25,000 4,000 Street
7,000 3,000 30,000 14,000 Street
4,400 1,600 16,000 6,500 Street
17,300 47,700 150,000 20,000 Street
3,892 2,590 15,000 4,000 Street
880 320 3,000 1,000 Street
15,500 16,500 Street
10,000 10,000 Street
2,000 2,000 Street
57,212 86,320 43,500 * 111,000
1985 3,310 3,000
1985 2,000 1,750
1484 11,000 11,00;
1986 6,000 4,500
1993 6,800 680
1986 3,000 est. 2,000
1991 s 10,000 1,250
1991 ' 4,956 456
1984 6,000 est. 6,000
1984 3,000 est. 3,000
1985 3,000 est.? 3,000
1985 1,000 est.1 1,000 est.€
1984 500 est. 500
1986 1,000 1,000
61 ,566 39,136
310
250
0-
1,500
6,120
1,0000
8,750
4,500
-0-
0
n
2,430
8,000
5,000
15,000
13,000
12,000
5,000
18,000
9,000
12,000
15,000
16,000
3,500
5,000
9,000
47,000 *
6,000
4,000
13,000
6,000
500
3,500
2,000
1,000
12,000
14,000
15,000
3,500
5,000
9,000
94,500
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
Golf Course
(9)
1984
Equipment
Repl. Charge
3,000
500
1,120
750
1,350
1,000
400
4,335
430
30
825
330
100
14,230
310
250
750
750
680
500
1,250
640
750r�
500
250
6,630
ATTACHMENT A, PAGE 4
E Q U I P M E N T R E N T A L W O R K S H E E T
(1) (2) 3) (4)
Year Depreciation
Year Equipment Vehicle To Be Original thru
Purchased Descri -tion Number Re laced Cost 12/31/83
(5) (6)
Value Estimated
on Replacement
1/1/84 Cost
WATER
1975 Ford Pickup Courier 11
1977 Dodge 1 Ton 12
1982 Dodge 3/4 Ton Pickup 29
1978 J. D. 310 Backhoe 51
1975 Pincof 5000 Generator 79
New Light Bar Trailer
TOTAL WATER
SEWER
1977 GMC Sewer Jet 8
1980 Dodge 1 Ton With Box 17
1977 Gorman Trash Pump 53
New Hydraulic Comp. Backhoe
TOTAL SEWER
UIPIENT RENTAL
1975 Dodge 1/2 Ton Van 13
1974 Ingram Port. Compressor 55
1972 Lincoln Welder 62
TOTAL EQUIPMENT RENTAL
GRAND TOTAL
1985
1987
1992
1993
1992
1984
1987
1990
1992
1984
1985
1989
1987
3,900
7,526
7,951
20,800
1,000
41,177
15,305
9,571
6,136
31,012
3,900:
4,250
3,000
1,150
519,442
(1) Initial contribution will be made by Current Fund.
01
3,510 390 8,000
5,266 2,260 13,000
1,591 6,360 16,000
8,320 12,480 40,000
500 500 4,000
5,500
19,187
21,990 j 5,500 *
4,590
5,740
66 j 3,270
17,412 ? 13,600
10 390-
30 1,420
2,200 800
8,540 j 2,610
297,982 221 ,460
30,000
18,000
14,000
5,800
(7)
Contribution
Capital
6,500
8,000
2,000
4,000
500
5,500
26,500
16,000
4,000
4,000
5,800
5,800 * 29,800
8,000
10,000
5,000
209,300 *
6,000
5,000
3,000
14,000 (1)
0
* 1984 Scheduled Replacement only.
(8)
Home
Unit
Water
Water
Water
Water
Water
Water
Sewer
Sewer
Sewer
Sewer
Equip, Rent.
Equip. Rent.
Equip. Rent.
(9)
1984
Equipment
Repl. Charge
390
750
795
1,385
60
180
3,550
1,530
955
410
1 95
3,090
390
285
265
940
68,120
•., Zr
;o CITY OF TUKWILA
ADMINISTRATIVE MANUAL
Index: 900 -05
Pagel of 5
TITLE: VEHICLE /EQUIPMENT PROCUREMENT &
REPLACEMENT POLICY
PURPOSE:
To outline the City's fleet management program to support the departmental core duties in the
most budget responsible manner and to establish general procedures for the planning and
purchasing of fleet inventory capital equipment.
REFERENCES:
Tukwila Municipal Code Chapter 3.80, Equipment Rental Fund
RCW 35.21.088
Ordinance No. 1309
NFPA 1901
POLICY STATEMENT:
Consistent and predictable timelines for purchase of capital equipment in the 501 Fund promotes
efficiency and department satisfaction. Equipment will be purchased in a manner that best meets
the overall needs of the City and that is consistent with City policy and State law. Working
closely with customer departments and Finance, it shall be the responsibility of Fleet Services to
plan, budget, and purchase capital equipment in accordance with the Tukwila Municipal Code
and schedule listed in this policy.
DEFINITIONS:
Heavy apparatus means pumper, aerial ladder, vactor waste truck, heavy rescue, SWAT Van, or
vehicles where the gross vehicle weight is in excess of 8,500 lbs.
Passenger vehicle means sedans, light -duty trucks, station wagons, SUVs, vans (cargo and
passenger), motorcycles, 4x4s, or any other vehicle where the gross vehicle weight is less than
8,500 lbs.
PROCEDURES:
INTRODUCTION
The City of Tukwila requires vehicles and equipment for service delivery, law enforcement, street
maintenance, utilities maintenance, inspections, fire suppression, parks maintenance, emergency
response, and administrative services. The fleet has a significant budget impact on the City. The
objective of this vehicle replacement guideline /procedure is to promote an orderly plan for
purchasing and funding a standardized fleet replacement program and to identify future
departmental fleet and equipment requirements.
60
TITLE: VEHICLE /EQUIPMENT
PROCUREMENT & REPLACEMENT POLICY
Index: 900 -05
Page 2
of 5
All City vehicles and equipment acquired and maintained shall be recommended for replacement
in accordance with this guideline.
1) The guidelines for vehicles /equipment considered for replacement are based upon the unit
meeting predetermined age and /or mileage criteria. Additional consideration will also be
given to functionality and overall condition of the vehicle. Priority will be given to those
departments whose services relate to public health and safety and emergency response
(First Responders).
a) As passenger vehicles reach the targeted miles or age for replacement, Fleet
Management will perform a vehicle maintenance evaluation. Factors that will be
considered in the evaluation of passenger vehicles include:
• Mileage - The most heavily weighted factor.
• Maintenance Costs - The second most important factor.
• Vehicle Age - Age alone does not provide a direct correlation to reliability or
maintenance; mileage is a far more accurate gauge.
• Vehicle must be fully depreciated.
b) Factors that will be considered in the evaluation of heavy apparatus include:
• Mileage - Experience has shown that beyond 100,000 miles, reliability begins to
drop significantly.
• Vehicle Age - With increased age comes a decrease in features and performance.
As an example, NFPA 1901, Standard for Automotive Fire Apparatus (2008
edition), does not recommend a specific lifespan for fire apparatus because of all
the various factors that impact life span. An apparatus may be used as a front line
piece of equipment for 5 to 10 years, depending on usage factors, or apparatus
greater than 15 years that have been properly maintained and that are still in
serviceable condition can be placed in reserve status.
• Maintenance Costs - There are far fewer heavy apparatus -type vehicles in the fleet.
As a result, there is a far greater impact upon a Department's ability to fulfill its
mission when one of these vehicles is unavailable due to maintenance and repair
needs.
• Vehicle must be fully depreciated.
2) REPLACEMENT CRITERIA' - Timely replacement ensures vehicles /equipment are
replaced once the vehicle's life cycle or economic costs reach a minimum. Anticipated
depreciation and resale value are considerations in replacing vehicles; however other
criteria such as operating costs, safety standards and departmental needs are also
evaluated.
Fleet Management recommends replacement of a vehicle based on the criteria met for
each class of vehicle. A technical /maintenance evaluation of requested replacement
vehicles will be performed by Fleet Management staff and forwarded to the Public Works
Director for approval and inclusion in the budget. The targeted replacement cycles, in
terms of recommended minimum years and miles, are as follows:
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Description
Automobiles
Sedans, Station Wagons
Law Enforcement Patrol
Motorcycles
Vans
Passenger
Cargo
Light Duty Trucks
Aae/Miles
7 yrs /100,000 miles
3 yrs /100,000 miles
4 yrs /85,000 miles
8 yrs /110,000 miles
10 yrs /110,000 miles
Pickup & 4 x 4 7 yrs /100,000 miles
Sports Utility 7 yrs /100,000 miles
Medium & Heavy Duty Trucks /Apparatus
Aerial Ladder 10 yrs
Aid Car 5 yrs
Dump Truck 15 yrs /4,000 hours
Flatbed 15 yrs /4,000 hours
Pumper 10 yrs
Rescue 15 yrs
Vactor Waste 8 yrs /3,000 hours
Miscellaneous Equipment
Backhoe 10 yrs /4,000 hours
Forklift 10 yrs
Generator (Pad Mounted) 20 yrs
Grounds Keeping Equipment 10 yrs
Manlift 10 yrs
Mower 7 yrs
Sweeper 10 yrs /4,000 hours
Tractor 10 yrs /4,000 hours
Utility Cart 8 yrs
Note: (1) The above vehicle /equipment criteria are from the National Association of Fleet Administrators 1998 Lifecycle
Survey, NFPA 1901 Annex D Standards for Automotive Fire Apparatus (2003 ed.), and Tukwila Fleet Management
historical data.
3) ACQUISITION - Public Works' Fleet Services is responsible for acquiring all City
vehicles and fleet equipment inventory using the most cost effective and `best practice'
method to meet the City's need in providing core services.
Annually, Fleet Management and the User department will jointly review departmental
requirements and vehicle specifications. It is Fleet Management's goal to select the
proper vehicle for the customer. Suitability and appropriateness for the job intended,
balanced by initial cost, depreciation/resale value, and maintenance factors are the primary
objectives for the fleet operating review. Compatibility with the rest of the fleet, fuel
economy, safety /repair records, and serviceability are also important considerations.
The City has created a Vehicle /Equipment Technical Committee to establish standardized
platforms; e.g. police cruisers, sedans, command vehicles for First Responders, etc. It is
the responsibility of the Committee to review current standardized platforms and ascertain
if the vehicle is meeting the criteria established. The Committee reviews all proposed
changes to an established platform configuration and forwards their recommendation to
the Executive Committee (Fire Chief, Police Chief, Public Works Director, and Finance
Director) for final approval.
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Once the replacement cycle is complete, the replaced vehicle is turned in to the Fleet
Department and evaluated for:
• Placement into the standby /loaner /reserve pool;
• Reassigned as a "low usage" vehicle to another Department; or
• Declared surplus and sold at auction unless another disposal method is chosen by
the City Council.
a) VEHICLE REQUEST FORM - If a Department requests to add, replace, or transfer a
vehicle in their fleet, a completed Vehicle Request Form shall be submitted during the
annual vehicle replacement process (March - July). Each Department Head shall
review and approve all requests for replacement, addition, or transfer before
submitting the request to Fleet Management. All special requirements, as noted on the
request form, require justification data. If the request involves changing an existing,
established standardized platform, then the request must first be reviewed and
endorsed by the Vehicle /Equipment Technical Committee.
b) The Public Works Director shall be responsible for taking action on all vehicle
requests by either: Putting the proposed replacement vehicle on the list and include
the cost in the next budget process; Transferring the vehicle to a new department;
Adding the vehicle to a department's fleet inventory and seeking additional future
funding for replacement and increased maintenance costs during the next budget
process. (Note: Additions are defined as any increase in the total number of vehicles
assigned to a City Department.)
c) If funding is not provided during the budget process, then the vehicle will not be
included on the replacement list. Similarly, for an addition to the fleet, if funding for
replacement and increased maintenance costs have not been included in the budget,
then the vehicle shall be declared surplus and sold at auction.
d) The procedure for requesting a vehicle for the fleet is as follows:
Who Takes the Action?
Vehicle requestor
Department Head
Fleet Management
Action Taken
Establishes justification for the vehicle.
Verifies and approves justification for the vehicle.
Approves fleet transfer, addition to the fleet, or
replacement request. Forwards request to Fleet.
Performs vehicle evaluation and makes a
recommendation to the Public Works Director.
Public Works Director Approves or denies request/transfer; places vehicle on the
replacement list or adds to fleet inventory and seeks
budget funding.
If the request is denied, notifies requesting Department
Head and provides reasoning.
Mayor /City Council Approves Budget
e) Should the requesting Department Head and the Public Works Director not agree
concerning replacing the vehicle or adding it to the fleet's inventory, then both
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Department Heads shall submit their positions in writing to the City Administrator for
a final decision. A decision will be made no later than July of each year such that the
appropriate budget action can be taken.
f) VEHICLE REQUEST CYCLE - Fleet Management will initiate the vehicle
request/replacement cycle in March of each year. From March through July, Fleet
Management shall work with the Departments to create and recommend a vehicle
replacement list based upon budget guidelines provided by the Mayor.
MID -YEAR REQUESTS - If there is an immediate operational need or if a
Department desires to add or replace a vehicle to the fleet outside the annual vehicle
replacement request process (March — July), a completed Vehicle Request Form shall
be submitted for processing as soon as possible. In addition to the Vehicle Request
Form, a budget amendment request for funding must be submitted to, and approved
by, the Finance Director and included with the request form before any action can be
taken.
g)
h) APPROVAL PROCESS - It is important that each completed Vehicle Request Form
follow the above approval process. Fleet Management reviews all requests once
submitted with proper approvals. Once reviewed, requests are presented to the Public
Works Director for recommendation and approval, then the annual vehicle
replacement request is forwarded to the Mayor and City Council for approval and
adoption as part of the budget process.
END
Title:
VEHICLE/EQUIPMENT PROCUREMENT &
REPLACEMENT POLICY
Initiating Department:
Public Works
Effective Date:
03/01/2011
Supercedes:
300 -13
Mayor's Office Approval Signature:
L.,
64