HomeMy WebLinkAboutres2023-040Whatcom County COUNTY COURTHOUSE
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Bellingham, WA 98225-4038
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Agenda Bill Report
File Number: AB2023-675
File ID: AB2023-675 Version: 1 Status: Substitute Approved
File Created: 10/11/2023 Entered by: SDraper@co.whatcom.wa.us
Department: Public Works File Type: Resolution
Department
Assigned to: Council Public Works & Health Committee Final Action: 10/24/2023
Agenda Date: 10/24/2023 Enactment #: RES 2023-040
Related Files:
Primary Contact Email: sdrapei-c co.whatcom.wa.us <mailto:sdi-aper zco.Nvhatcom.wa.us>
TITLE FOR AGENDA ITEM:
Resolution adopting Equipment Rental and Revolving (ER&R) Management Policy as required by the
County Road Administration Board
SUMMARY STATEMENT OR LEGAL NOTICE LANGUAGE:
See Memo
HISTORY OF LEGISLATIVE FILE
Date: Acting Body:
Action:
10/24/2023 Council Public Works & Health SUBSTITUTE
Committee RECOMMENDED FOR
APPROVAL
Aye: 3 Frazey, Galloway, and Kershner
Nay: 0
Sent To:
10/24/2023 Council SUBSTITUTE APPROVED
Aye: 7 Buchanan, Byrd, Donovan, Elenbaas, Frazey, Galloway, and Kershner
Nay: 0
Attachments: Memo, Resolution, Exhibit A - CRAB Policies, Substitute Exhibit A - CRAB Policies
Whatcom County Page 1 Printed on 10/25/2023
PROPOSED BY:
INTRODUCED:
RESOLUTION NO. 2023 - 040
Adopting the Equipment Rental and Revolving
(ER&R) Management Policy required by the
County Road Administration Board
WHEREAS, WAC 136-600 was created to clarify duties, responsibilities,
submittal requirements, and due date regarding the administration of ER&R.
WHEREAS, Subsection WAC 136-600-070 states:
"WAC 136-600-070 Submittals. Each county engineer shall submit the following
documents to CRAB no later than April 1st of each year:
(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."; and
WHEREAS, the Assistant Superintendent -Equipment Services, Whatcom County
Engineer, and the Whatcom County Public Works Director have updated and approved this
policy;
NOW, THEREFORE, BE IT RESOLVED that the Whatcom County Council adopts the
ER&R Management Policy attached as exhibit A.
PPRO/E9 Vkth' .day of October , 2023.
WHATCOM COUNTY COUNCIL
ATTES�0��w...:y WHATCOM COUNTY, WA HINGTON
(� m
Dana°.;Brown@D is � 1 R 6'f the Council Ba y u h. nan, Council Chair s
omm®
APPROVED AS TO FORM�f .
Approved Via Email-CQ/BP
Christopher Quinn, Civil Deputy Prosecutor
Page 1
Exhibit A
PW 183001Z
1. Purpose
1.1. The intent of this policy is to establish guidelines for the administration of vehicles and
equipment managed under the "Equipment Rental and Revolving Fund" for Whatcom County
pursuant to RCW Chapter 36.33A and WAC chapter 136-600. Within this policy will be
guidelines for setting rental rates for vehicles and equipment that will ensure proper equity is
being collected for the maintenance, operation, management and eventual replacement of the
unit. This policy will also clarify replacement criteria for vehicles and equipment to ensure that
they are being used effectively and efficiently while maximizing capital return upon surplus of
each unit in order to utilize the "Equipment Rental and Revolving Fund" to the highest
potential. This replacement criteria will be utilized in establishing the previously mentioned
rental rates.
2. Vehicle and Equipment Retention, Replacement, and Disposal
2.1. Appendix A "Capital Equipment Replacement Criteria"
2.2. Option for early replacement of vehicles or equipment
2.2.1. As a unit approaches the end of its designated life cycle, final disposition becomes a
managerial decision based on a combination of factors. Each unit must be considered
individually in terms of reliability, maintenance, safety and salvage value. Adequate record
keeping and analysis of vehicle costs are critical to timely and effective disposition. The
Assistant Superintendent — Equipment Services will review all pertinent information and
work with department managers in making final vehicle disposition decisions. When
analysis demonstrates that it is no longer cost effective to retain a vehicle in the fleet, it
should be disposed of regardless of mileage or age.
2.2.2. Any unit that is deemed to be totaled or damaged beyond reasonable repair will qualify
for early replacement. Consideration will need to be paid to the equity available in the
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PW183001Z
piece of equipment and where funds may come from to cover any disparities between
that amount and the replacement cost. This budgetary process for securing the difference
will be the sole responsibility of the department that was renting the equipment when the
damage occurred.
2.2.2.1. If the department finds that they no longer need the equipment or do
not have the budget to replace it, they will have the option to remove the
piece of equipment from ER&R. The equity and proceeds from disposal of
the vehicle or equipment will be returned to the department less the cost
of decommissioning and disposal.
2.3. Disposal of Vehicles and Equipment
2.3.1. Once a final decision is made to remove a vehicle or piece of equipment from the fleet,
the method of disposal must be identified, the timing of disposition determined, and
decommissioning procedures completed. The Assistant Superintendent — Equipment
Services will work with the Finance Department to declare vehicles surplus. The
determination will then be made for the best method and location of sale which meets
legal guidelines and provides the best potential return to the County. Most county vehicles
and equipment realize the greatest return when sold at auction.
2.3.2.Internal Transfer
2.3.2.1. Even though a unit is no longer needed by one Division, it may benefit the County to
re -assign it to another Division until it reaches the end of its useful life.
2.3.2.2. Vehicles and equipment may be deemed to be no longer needed by a department if
they are being underutilized. In this case the vehicle and equipment would be
eligible for transfer or reassignment to another division at net book value. This does
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PW 183001Z
not apply to certain units that are considered necessary for use during a county
emergency (ie. Flood, winter storm, natural disaster, etc.)
2.3.3. Public Surplus Auction
2.3.3.1. Auction services are chosen by utilizing the County bidding process and awarding
the contract to the auction house or online government liquidation sites providing
the best value.
2.3.4. Scrap
2.3.4.1. Scrapping of equipment and vehicles will be reserved for those units that are
deemed to have no residual value and would presumably bring a negative net
return at auction.
3. Equipment Purchasing Best Practices
3.1. Vehicles and equipment will be standardized among preferred brands whenever reasonable to
do so.
3.1.1. This allows for streamlined processes in: tech training, tooling, parts inventory,
troubleshooting, vendor rebates, and operator familiarity
3.2. The Assistant Superintendent — Equipment Services will meet with relevant levels of
stakeholders when assessing needs and specifications for vehicles and equipment to be
purchased. (ie. Mechanic, equipment operator, department representatives, Assistant
Superintendent of Equipment Services)
3.3. Vehicle and equipment replacement shall be evaluated for alternative fuel/low emission
replacement when suitable options are available. This preference will be contingent on the
application of the units and the ability of the alternative option to perform under the required
circumstances.
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PW 183001Z
3.4. The Assistant Superintendent — Equipment Services will follow all Whatcom County procedures
and regulations in regards to the acquisitions of Capital Assets
4. Equipment Rental and Hourly Shop Rate Guideline
4.1. Appendix B "ER&R Rental Rate Procedures and Example"
4.2. The basis for the establishment of equipment rental rates is found in RCW 36.33A.040, which
states, "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 or maintaining the
equipment, and the future replacement thereof. The rates shall be determined by the County
Engineer or other appointee of the County Legislative Body and shall be subject to annual
review by the Legislative Body".
4.2.1.The Assistant Superintendent — Equipment Services will develop and recommend rates for
all vehicles and equipment annually.
4.2.2.The County Engineer will approve all rental rates as directed by RCW 36.33A.040.
4.2.3.It will be the responsibility of the Assistant Superintendent — Equipment Services to
present all applicable rental rates to the County Engineer, the County Council, and all
departments who participate in the ER&R fund.
4.3. Determination of Rental Rates
4.3.1.Appendix B "ER&R Rental Rate Procedures and Example"
4.3.2. Rates shall reflect 100% of annual expenses, including replacement cost, inflation, labor
and parts for service, indirect costs, and overhead. Rental rates for all vehicles are
calculated per vehicle. Finances for vehicles and equipment will be tracked individually for
operation, maintenance, and replacement. Vehicles and equipment will be grouped for
rates with like units when possible. Departments will be billed on a monthly basis.
4.3.3. Rental rates do not include charges for damage repairs.
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PW18300lZ
4.4. Determination of Hourly Shop Wage
4.4.1. The hourly shop rate will be evaluated annually and adjusted as needed. The rate will be
set in such a manner as to cover all direct and indirect costs of operation.
S. Stores
5.1. Frequently used parts and supplies will be kept on hand as inventory items. Additional items
will be kept on hand and inventoried in case of emergencies to reduce down -time. Such
additional inventory items should be limited to critical components that may be difficult to
source or may have long lead times.
5.2. Inventory purchases are paid for by the ER&R fund; related costs shall be kept to a minimum.
When an inventoried part is billed to a work order it is then paid for by the rental rate collected
or an interfund transfer. The revenue then returns to the ER&R fund.
5.3. Stores will be responsible for managing all bids and contracts for equipment, materials,
supplies, and services for the county road fund in accordance with RCW 36.33A
5.4. Stores pricing is established by the Assistant Superintendent — Equipment Services based on
cost plus a markup to recover administration, maintenance, and overhead costs of Stores. The
markup scheme will be reviewed annually.
6. Fleet Services
6.1. The goal of the Central Shop is to provide a professional and courteous service to County
Departments/Offices. The Central Shop strives to reduce repair costs, reduce down -time, and
ensure the availability of vehicles and equipment.
6.2. Services and Inspections
6.2.1.The ER&R preventive maintenance and repair program will follow Federal Motor Carrier
Regulations.
Page 5of11
6.2.2.All vehicles and equipment managed by ER&R must be serviced and maintained by the
ER&R shop unless prior authorization to utilize an outside entity has been granted. Outside
entities must perform service work in accordance with County standards. The Assistant
Superintendent - Equipment Services will consult with the Division on specialized work and
outsourcing of repairs, in addition to determining the need for emergency road services.
6.2.3.Maintenance and repair costs will include parts, tires, fluids, consumables, and labor.
6.2.4.Vehicles and equipment will receive a full safety inspection once a year. The interval
between these inspections will not exceed 12 months.
6.3. ER&R Service Intervals
6.3.1.The Assistant Superintendent - Equipment Services will determine appropriate service
intervals. The goal is to service vehicles and equipment as suggested by the factory manual
or sooner. All vehicles or equipment subject to Federal Motor Carrier Safety
Administration (FMCSA) regulations will be inspected in accordance with FMCSA
guidelines.
6.4. Maintenance and Repair
6.4.1.Regularly scheduled services and preventative maintenance are critical components of
cost-effective fleet operations and help to preserve vehicle value over time. Achieving
these benefits requires effort and communication by leadership, operators, and fleet
management personnel. The Shop Crew Lead and Shop Service Writer will ensure each
vehicle in the fleet is scheduled for regular service at appropriate intervals, E-mail
reminders will be sent to key Division personnel to make it as easy as possible to adhere to
service schedules and procedures. All maintenance and repairs to fleet vehicles will be
made under the direction of the Assistant Superintendent - Equipment Services.
6.5. Scheduled Maintenance Procedure:
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PW18300lZ
6.5.1. As a best practice it is recommended that each Division designate an individual
responsible for all vehicles within that division to ensure vehicles are delivered to the shop
prior to scheduled service appointments.
6.5.2. Operators are required to drop off vehicles at the County Shop prior to the scheduled
time and fill out service slips, noting mileage and any vehicle defects to be addressed
during the service.
6.5.3. When servicing is complete, shop personnel will call and notify the Department's/Office's
designee that the vehicle is ready for pick-up.
6.6. Repair Procedure:
6.6.1. Vehicles requiring repairs should be delivered to the County shop with a repair request
form filled out in detail, accurately describing the condition of the vehicle.
6.6.2. If a vehicle is stranded notify the Shop Service Writer, Shop Crew Leader, or Assistant
Superintendent - Equipment Services to arrange for mobile repair or towing by shop
personnel.
6.6.3. Shop personnel will diagnose problems, request parts from stores, coordinate and
complete repairs, and notify Departments/Offices when the vehicle is ready for pick up.
6.6.4. All warranty work and recalls will be facilitated by the Shop Service Writer, Shop Crew
Leader, or Assistant Superintendent - Equipment Services.
6.6.5. Departments/Offices must communicate with the Assistant Superintendent - Equipment
Services, Shop Crew Leader, or Shop Service Writer regarding repair schedules, available
replacement vehicles, and any other details regarding vehicle repair.
6.7. Department/Division Responsibilities
6.7.1. Each Division should designate both a primary and secondary contact who shall be
responsible for coordinating maintenance and repair efforts. This designee will also be
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PW 183001Z
involved in rental rate discussions and new/replacement vehicle purchases. They will serve
as the main liaison between their Division and Public Works Fleet personnel.
6.7.2. Each Division is responsible for managing vehicle usage and for scheduling services and
repairs. In an effort to reduce maintenance costs and to increase turn -around times on
vehicle repairs, the user will deliver and pick up vehicles or equipment from the Central
Shop.
6.7.3. Each Division is responsible for keeping the interior and exterior of the vehicles clean. Any
wash or vacuum costs will be paid by the Division.
6.7.4. Each Division is responsible for any traffic infractions, parking tickets, or toll fees incurred
by its employees while using ER&R vehicles or equipment.
6.7.5.Each Division is responsible for ensuring that equipment and vehicles that are operated
under the ER&R fund are kept in good condition. Any damage should be reported
immediately and scheduled for repair. This includes but is not limited to any major body
and cosmetic damage.
6.7.6. Each Division will be responsible for paying the costs to replace or repair the vehicle or
piece of equipment if damaged vehicles or equipment require repairs or if damage results
in the need to take a vehicle or piece of equipment out of service prior to its depreciated
life.
6.7.7. Each Division will be responsible for paying any and all costs related to equipment
upgrades, additional equipment, and retro-fits to vehicles.
6.8. Maintenance Shop Information
6.8.1.Address: 901 West Smith Road, Bellingham, WA 98226
Assistant Superintendent - Equipment Services: Brett Piepel
Phone:360-778-6400
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PW 183001Z
Appendix A "Capital Equipment Replacement Criteria"
Capital Equipment Replacement Criteria
Whatcom County Public WorKs- tquipment services uivision - January zuL4
1-5, 10, 84
Passenger Cars
8
or
100,000
12-25
Pickups & 4x4
8
or
100,000
6-9
Vans & Caryalls
8
or
100,000
26
Work Trucks (up to 2,300 lbs. GVW)
8
or
100,000
38
Dump Trucks (10-12 yard)
10
or
250,000
29
Single -Axle Dump Truck (5 yard)
10
or
175,000
32
Vacuum Truck
10
or
80,000
11
UTV
10
or
5,000
39
General Purpose & Water Truck
10
or
80,000
31,32
Street Sweepers & Brooms
5
or
3,000
58
Brush Chipper
6
or
7,000
64,68
Air Compressors & Welders
8
or
5,000
54,49
Chip Spreader & Oil Distributor
12
45, 60, 61
Trailers
15
46
Motor Graders
15
50, 51, 40
Loaders
15
75
Forklift
15
42,48
Backhoe & Excavator
15
35
Rollers
15
55
Sanders Sand/Salt
10
65,66
Generators, 5-15 KW
10
56,57
Snowplows
10
30
Hot Box Patch Truck
10
33
Tractors
8 or 6,000
34
Herbicide Truck
15
36
Mower - Rotary
6
37
Mower - Brush
6
41
Small Dozer
15
43
Aerial Truck
15
44
Lowboy Truck
10 or 250,000
47
Ditching Machine
10 or 5,000
52
Crane Truck
15
53
Paint Striper Truck
15
59
Boat
15
62
Crack Sealer
15
63
Steam Cleaner
15
67
Drills & Augers
15
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PW18300lZ
Appendix A "Capital Equipment Replacement Criteria" Continued
Capital Equipment Replacement Criteria
wnatCOm County vuonc worKS- tquipment Services uivision - January ZUZ4
69
Pumps
10
70
Compactors
15
71
Sprayers
10
72
Misc. Road Equipment
varies
73
Ferry
50
74
Parks Tractor
8 or 6,000
76
Bus - Prisoner Vans
varies
77
Motorcycles
5 or 30,000
78
Command Van
varies
80
Parks Push Mower
2
varies on
81
Parks Paddle Boats
condition
varies on
82
Parks Canoes & Kayaks
condition
83
Parks Others
varies
85
Radios - Sheriff
varies
86
Misc. Computers
varies
87
ER&R Shop Tools
varies
Sheriff Patrol Vehicles
Parks Mower
Notes:
This criteria is meant to act as a guideline for replacement. The final decision to pursue replacement of a
vehicle or piece of equipment will be made by the Assistant Superintendent — Equipment Services utilizing an
analysis and logic -based protocol. This protocol includes but is not limited to; utilization, cost of replacement,
cost of repair, equity, condition of the vehicle/equipment, availability of parts, and many other relevant
factors.
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PW 183001Z
Appendix B "ER&R Rental Rate Procedures and Example"
Important Terms:
1. Definitions/terms
a. Life Expectancy: The life expectancy of a vehicle is determined by the replacement
criteria in Appendix A. Where expectancy can depend on either years, miles, or hours,
the determination on which to use will be based on historical data for comparable
equipment and expected usage amounts.
b. AGI: The expected 5-years rolling average inflation.
c. O&M Cost: The dollar value of the cost of operating the vehicle over its life cycle. This
includes costs for preventative maintenance and any replacement of wearable parts.
Overhead is worked in to this indirectly through labor rates and stores markup.
I. Examples: oil changes, new tires (replaced for general wear, not damage),
windshield wipers, wear blades, etc.
d. Replacement Cost: The expected cost to replace the unit at the end of its life cycle
including cost for make ready and upfit. This also accounts for inflation over the life of
the unit.
e. OEC: Original equipment cost. The price of that apiece cost you to buy plus any
capitalized makeready and upfit.
f. LTD: Life to date
g. Unit: A single vehicle or piece of equipment with an assigned asset number
h. Salvage Value: The salvage value will beset at 5% of the OEC
2. Calculations
a. Rental Rate
i. (Replacement Cost + O&M)/(Life Expectancy)=Monthly, hourly, or per mile rate
b. Replacement Cost
I. OEC*(1+AGI)^(Life Expectancy in years-1)=Expected cost to replace at the end of
the life cycle
c. O&M Cost
i. (LTD O&M Cost of comparable vehicle)/(Life Expectancy)
ii. Use the average cost for a comparable class or do as many individual
comparable vehicles and average the final results
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