HomeMy WebLinkAbout2111RESOLUTION NO 2111
WHEREAS the City of Bremerton owns and operates a Vehicle
Maintenance Repair Garage, and
WHEREAS the City of Bremerton operates an Equipment Rental
Fund, and
WHEREAS rental charges, maintenances charges, and other
charges outside the set maintenance and rental funding must be
sufficient to fund these operations, now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CiTY OF BREMERTON
That the following Sections governing reserve charges,
maintenance charges, leasing specifications are hereby adopted.
PASSED by the City Council of the City of Bremerton this
19th day of February, 1986.
Mayor Gene Lobe
ATTEST:
KATHLEEN MCCLUSKY
City Clerk
SCHEDULE A - EQUIPMENT RENTAL RESOLUTION No. 2111
SECTION 1. EQUIPMENT RESERVE CHARGES: The monthly RESERVE
rate for each particular item of assigned rental equipment use
:shall be that amount computed by dividing the uncol!ected
replacement cost by the months of useful life remainlng, with
reasonable deviation to allow for such izems ,as anticipated
interest earnings on invested funds. A specific reserve cost for
each item of equipment appears in the latest edition of VEMPS
{Vehicle Multiplan (tm) Spreadsheet)
SECTION 2 RENTAL FLEET EQUIPMENT MAINTENANCE CHARGES:
monthly rental fleet equipment MAINTENANCE rates established for
1985 will remain unchanged for 1986. These rates appear in
the latest edition of VEMPS.
SECTION 3. SHOP LABOR: Hourly shop labor rates are
applicable to all chargeable service not covered by rental fleet
equipment maintenance charges. The shop labor rates for 1986
are:
Sedans/Pickups/light equipment 40.00
Heavy/specialized equipment ..... 40.00
Overtime .............. 50.00
SECTION 4. LEASING: As may be specifically authorized by
City Council, 'Transportation Department, for and on behalf of the
Equipment Rental Fund, may negotiate closed-end lease agreements
which involve new or alternate equipment. Such new or alternate
equipment would usually constitute an expansion of the City's
rental equipment assets.
These lease agreements shall be signed by both the lessor
and the lessee and shall remain in effect For the term indicated
and agreed upon in each lease. Included in the terms of such
lease agreements shall be the capitalized cost of the equipment,
interest charges equal to anticipated investment interest,
anticipated maintenance costs, and other option,Ai contingencies
as outlined in the terms of each lease agreement.
Abrogation of said lease agreements shall require the
consent of both Lessor and Lessee.
The Month!y leasing rate shall remain fixed during the
entire period of the lease except under the following conditions:
1. Annual cost of City liability insurance is
increased or decreased
2. Maintenance costs exceed initial main-tenance
projections by 25%
3. Replacement cost exceed initial replacement
projections by
Upon completion of the terms of said lease agreement, the
lessee shall be given the following options:
1. Renewal of lease agreement for the purpose of
replacement reserve accumulation and maintenance
2. Release of all interests
SECTION 5. SALE AND LEASEBACK AGREEMENTS: As may be
specifically , authorized by City Council, Transportation
Department, for and on behalf of the Equipment Rental Fund, may
renegotiate sale and leaseback agreements on equipment belonging
to other funds. Negotiations shall be in accordance with fair
market trade values.
SECTION 6. VEHICLE FUEL COST: A separate charge shall be
made for vehicle fuel furnished to the using departments and
other agencies, in addition to the monthly equipment charges. the
cost oE vehicle fuel shall include The cost of fuel services at a
rate not to exceed $.10 per gallon.
1986 RENTAL RATES SECTION
MONTHLY RAFES (Hourly rates when applicable are based on 1/50th
monthly rate.)
GROUP
DESCRIPTION
MONTHLY MAINTENANCE
10 Sedan, compact
20 Sedan, intermediate 150
30 Sedan, full size 150
41 Sedan, Police patrol 400
50 Sedan, Police, non-patrol 150
60 Truck/van - 1/2 ton 150
70 Truck/van - 3/4 ton 175
80 Truck/van - 1 ton 200
90 Dump truck - 1 ton 250
100 Dump truck - 5 yard 300
110 Dump truck - 10 yard 567
120 T. S. boom truck - 1.5 ton 260
130 Vactor/jet truck 800
150 Three-wheel scooter 150
160 Motorcycle 146
170 Salt spreader 45
180 Sander 250
190 Snow oiow 50
210 Street sweeper 1S00
230 Backhoe 650
240 Dozer 303
260 Tractor, small !00
270 Tractor, large 154
280 Mower, street 500
290 Mower, small 20
300 Mower, soeciai !5
3!0 Asphalt roller 98
320 Asphalt sprayer 53
330 Asohait nearer 25
340 Asphalt paver
350 Asphalt patchef 60
360 Hydro hammer 150
370 Compressor w/jack & hammer 45
380 Concrete saw 22
390 Brush chipper 50
400 Steam cleaner 80
410 High pressure washer 21
420 Trailer, small 20
430 Trailer, large
440 Trench/manhole box 25
450 5-yard with do-all 300
460 Seryice flatbed - 1 ton 185
470 Generator 138
480 4 x 4 truck medium 195
CITY OF BREMERTON
SUPPORT SERVICES DEPARTMENT
TRANSPORTATION DIVISION
Vehicle and Equipment MultiPlan Spread sheet
VEMPS
VEMPS
D16CI2OJTP
JANUARY 14, 1986
PAGE 1
INTRODUCTION
VEMPS is a spreadsheet that tracks Fund 510, Equipment Rental
Reserve, on an individual vehicle basis.
The process follows these steps
Estimate the replacement cost and the reniacement date of
each vehicle.
Distribute the amount of the current reserve fairly over all
of the vehicles in the fleet.
Calculate the monthly payments necessary over the expected
life of each vehicle. This must take into account the amount
of interest that will be earned on cash reserves during the
life of the vehicle.
This yields a monthly rate that is unloue for each vehicle.
There are several parts to each vehicie's monthly charges. A
reserve rate is charged to replace Each vehic!e. A
maintenance rate is charged to maintain the vehicle. If the
vehicle has a two-way radio, it is charged a maintenance rate
and a reserve rate for the radio. The total charge for a
vehicle is the vehicle reserve rate and maintenance rate plus
the radio reserve rate and maintenance rate. Sometimes the
total charge is called the rental rate.
All the material in this package is derived from the
'soreadsheet The spreadsheet is a computer file that
contains all the formulas for generating proposed rates. it
can accept numerous dates, interest rates, vehicle prices,
and new formulas. The spreadsheet is included at the end of
this package in several forms· It has been sorted by several
different categories to allow easy reference to the material
contained within.
VEMPS
D16C12OJTP
JANUARY 14 , 1986
PAGE 2
COLUMN HEADINGS SECTION
Following are short narratives for each column heading of the
spreadsheet.
CURR DATE :'The point in time that all calculations reference.
INFLATION RATE :An arbitrary inflation rate. Currency set at
per year.
CURRENT RESERVE :The current cash assets of Fund 510
B26 INVESTMENTS :Purchase of B26 microcomputers represents a
short term investment of reserve funds.
INTEREST RATE :An arbitrary interest rate. Currently set at 8%
compounded monthly.
EQUIP NO :Assigned equipment number.
DEPT ASSIGNED :Department equipment is assigned to.
GROUP :Refer to 1985 RENTAL RATES SECTION.
1985 RATE :Contains the approved equipment rental rate for 1985.
1984 RATE :The monthly rental rate used previous to 1985.
DELTA :The increase or decrease in the monthly rate from 1984 to
1985,
MAINT RATE :The monthly cost of maintaining the vehicle. The
Fire Department does their own maintenance and therefore pays
only the costs of administering the Reserve Fund.
RSRV RATE :Reserve rate. The dollar amount which currently
accrues monthly for vehicle replacement.
PURCH YR MO :Purchase date.
LIFE :The expected life of The vehicle in
REPLA YR MO :The calculated replacement date.
MOS USED :Months used from purchase date to current date
ADD LIFE :Added life. The increase to the exoected vehicle life
in months. We bumped up the lives of all vehicles with less
than 11 months to run.
MOS REM :Months remaining until expected replacement date.
PURCHASE PRICE :Purchase price.
VEMPS DI6C12OJTP ,7ANUARY 14, 1986 PAGE 3
CAPITAL IMPROVE :Major work that has been done to a piece of
equipment to increase its expected life. This cost is passed
on to the end user as part of the total costs to recover.
PROJECTED REPL COST :Projected replacement cost based on the
inflation rate.
THEOR ACCUM RESERVE :Theoretical accumulated reserve. The amount
of reserve that would have accumulated if the reserve rate
had been accrued during the past life of the vehicle. This
is not the actual amount accrued and is used because the
actual amount is not readily available.
ALLOC WEIGHT :Allocated weight. A weighting factor that takes
into account the age, life, and reserve rate of the
equipment.
ALLOC RESERVE :Allocated reserve. Fund 510 distributed over the
equipment using the allocated weight.
INT ON ALLOC RESERVE :Interest on allocated reserve. The
interest that is expected to be earned by fund 510 on assets
currently owned.
COST TO RECOVER :The dollar amount that needs to be recovered by
future rentals.
INT TO BE EARNED :Interest to be earned. The expected interest
to be earnd 'by Fund 510 on monthly deposits at the new
reserve rate during the remaining months before expected
replacement.
NEW RSRV RATE :Also known as the proposed reserve rate. The
monthly amount necessary to collect the projected replacement
cost during the months remaining. Add the maintenance rate
to the new reserve rate to get the proposed rental rate.
NEW DELTA :Also known as the proposed rental increase. The
difference between the 1985 rental rate , and the proposed
rental rate.
VEMPS D16C!20JT? jANUARY !.~, 1986 2A~E 4