Chapter 3.09
EQUIPMENT RENTAL FUND

Sections:

3.09.010    Fund created.

3.09.020    Purpose.

3.09.030    Administration.

3.09.040    Sources of revenue.

3.09.050    Rental rates.

3.09.060    Accounts and records.

3.09.070    Expenditures.

3.09.080    Transfer of equipment.

3.09.090    Dissolution of fund.

3.09.010 Fund created.

There is created and established a special fund to be known and designated as the “equipment rental fund” in accordance with the provisions of RCW 35.21.088 as the same now is or hereafter may be amended. (Ord. 798 § 1 (part), 1986).

3.09.020 Purpose.

The purpose of the equipment rental fund shall be to establish a central agency for the control, operation and maintenance of municipal equipment and the rental of such equipment to the various departments of the city and other governmental agencies at rates sufficient to meet costs of operation and to provide funds for the acquisition and replacement of equipment. (Ord. 798 § 1 (part), 1986).

3.09.030 Administration.

The equipment rental fund shall be administered by the public works director, subject to the general administrative authority of the city administrator. (Ord. 798 § 1 (part), 1986).

3.09.040 Sources of revenue.

The equipment rental fund shall derive its moneys in any of the following ways:

A. From proceeds received from the rental of any of the equipment owned by the fund to other departments, offices or funds of the city or other governmental agencies. This shall include transfers from other funds or direct payment of amounts received for the use of such equipment on reimbursable projects done by the city;

B. From proceeds received from the sale of fuel, fabrication services, and garage services for equipment not owned by the fund to other departments, offices or funds of the city or other governmental agencies. This shall include transfers from other funds or direct payment of amounts received for such services;

C. From the proceeds received from the sale of any of the equipment owned by the fund;

D. By appropriation or budgetary transfer made by ordinance from other fund or funds of the city. (Ord. 798 § 1 (part), 1986).

3.09.050 Rental rates.

The administrator of the fund shall establish a schedule of reasonable rental rates and other charges to be paid by the users of the fund’s equipment, materials and supplies, which shall take into consideration the costs and expenses of the following: operating supplies, maintenance expense, insurance, depreciation and other direct cost items; operational costs of the fund (overhead); a contingency for the acquisition of additional equipment and replacement of old equipment; including shop and administrative equipment; and such other items as may be reasonable or necessary in the proper operation of the fund. The schedule shall be submitted to the city council for approval and adoption by resolution and shall be reviewed and updated as necessary to reflect changes in operating, maintenance and depreciation costs. (Ord. 798 § 1 (part), 1986).

3.09.060 Accounts and records.

There shall be kept by the clerk-treasurer such books, accounts and records as are necessary to control and report the financial operations of the equipment rental fund. The accounts shall be set up and maintained in such a manner as to separately show the rental and other sources of revenues from the various departments and funds of the city. The equipment rental fund cash account shall be subdivided into two separately designated accounts as follows:

A. Account “A,” which shall be the “current operating account” into which shall be placed those portions of the charges made to the various departments or offices of the city or other governmental agencies, in accordance with the provisions of Section 3.09.050 hereof, which are specifically billed to provide sufficient moneys to pay the costs necessary to operate and maintain all equipment rented thereto. There shall also be placed into Account “A” moneys which may from time to time be specifically available thereto by action of the city council.

B. Account “B,” which shall be the “equipment reserve account” into which shall be placed those portions of the charges made to the various departments or offices of the city or other governmental agencies, in accordance with the provisions of Section 3.09.050 hereof, which are specifically billed to provide sufficient moneys, having first taken into consideration the necessary operating and maintenance costs billed under subsection A, to pay the costs of purchasing additional equipment and replacing used equipment as required to carry out the purpose of the equipment rental fund. There shall also be placed in the Account “B” moneys which are derived from the direct sale of any equipment or other capital assets of the fund and any moneys made specifically available thereto by action of the city council. (Ord. 798 § 1 (part), 1986).

3.09.070 Expenditures.

Revenues received in the equipment rental fund shall be expended only for salaries, wages and operations required for the repair, replacement, purchase and operation of equipment and for the purchase of equipment, materials and supplies to be used in the administration and operation of the fund. (Ord. 798 § 1 (part), 1986).

3.09.080 Transfer of equipment.

There shall be transferred to the equipment rental fund those items of equipment from the various funds, departments and offices of the city as designated by council resolution without charge or credit given. The city council may by council resolution authorize the transfer of additional equipment from the various funds, departments and offices of the city without charge or credit given. All equipment purchased by the city with revenues from the equipment rental fund shall be transferred to the equipment rental fund. (Ord. 798 § 1 (part), 1986).

3.09.090 Dissolution of fund.

Should the equipment rental fund established in this chapter be dissolved for any reason, a final disposition of the assets on hand shall be made among the various departments, offices and funds of the city participating in and utilizing the fund, in direct proportion to the amount of such participation and use, taking into consideration the transfer of equipment specially designed for the use of a certain department, office or fund. (Ord. 798 § 1 (part), 1986).