Chapter 3.40
EQUIPMENT RENTAL FUND

Sections:

3.40.010    Fund created.

3.40.020    Purpose of the fund.

3.40.030    Fund administration.

3.40.040    Sources of revenue.

3.40.050    Operation.

3.40.060    Expenses.

3.40.070    Rental rates.

3.40.080    Transfers of equipment.

3.40.090    Dissolution of the fund.

3.40.010 Fund created.

There is hereby created an internal service fund to be known and designated as the equipment rental fund (together with such numerical designation as shall be assigned said fund by the chief financial officer of the City for accounting and budgetary purposes) in accordance with the provisions of RCW 35.21.088. (Ord. O2010-276 § 1)

3.40.020 Purpose of the fund.

The purpose of the equipment rental fund shall be for the control, operation and maintenance of municipal equipment and the rental of such equipment to the various departments of the City at rates sufficient to meet the costs of operation and to provide funds for the acquisition and replacement of equipment. (Ord. O2010-276 § 2)

3.40.030 Fund administration.

The equipment rental fund shall be administered by the finance and public works directors, subject to the general administrative authority of the City manager. (Ord. O2010-276 § 3)

3.40.040 Sources of revenue.

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

(1) By direct appropriation in the annual or biennial budget from tax levies or other sources of anticipated revenue;

(2) By appropriation or budgetary transfer made by ordinance from other funds of the City;

(3) From proceeds received from the rental of any of the 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 done by the City;

(4) From the sale of any of the equipment owned by the fund. (Ord. O2010-276 § 4)

3.40.050 Operation.

The accounts of the equipment rental fund 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 and shall make an allocation of such revenues between those required for operational costs and those set aside for the acquisition and replacement of equipment. (Ord. O2010-276 § 5)

3.40.060 Expenses.

Revenues received in the equipment rental fund shall be expensed 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. O2010-276 § 6)

3.40.070 Rental rates.

The administrator of the fund 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, at a minimum, take into consideration the costs and expenses of the following: operating supplies; maintenance expenses; insurance, depreciation, and other direct cost items; operational costs of the fund (overhead); a contingency for the purpose of adding 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 its approval and adoption and shall be reviewed and updated as necessary to reflect changes in operating, maintenance and depreciation costs. (Ord. O2010-276 § 7)

3.40.080 Transfers 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 shown on the “schedule of equipment transferred” as well as any similar types of equipment purchased by other funds in the future, without charge or credit given to the purchasing fund. (Ord. O2010-276 § 8)

3.40.090 Dissolution of the fund.

Should the equipment rental fund herein established 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. O2010-276 § 9)