HomeMy WebLinkAbout040 - Equipment Rental Fund r ,
AUJINISTRATIVE ORDER NO . 40
TO: ALL DEPARTI4�"V.i TS May 11 , 1983
FRO[ f : Lee Kraft , City Manager I/
SUBJECT : EQUIIItTNT RENTAL FUND : DELINEATION OF RESPONSIBILITIES
AND PROIiIUIGATION OF RULES AND REGULATIONS .
Administrative Order No . 23 , issued on March 17 , 1981 , is hereby repealed
and in lieu thereof the following Order is promulgated :
PART I - DELINEATION OF RESPONSIBILITIES :
Section 1 . The Director of Public Works , acting as Fleet Supervisor ,
shall be responsible for supervision over the garage in all matters relating
to the operation of the garage , equipment pool , and warehouse . For purposes
of organization , the equipment pool shall be deemed to be a division of
the Public Works Department . In matters concerning cost accounting and
inventory control as to the card index aspect of the inventory , the Director
of Finance/Administrative Services shall have functional control over
the type and substantive matter of the cost accounting records . The
Public Works Department shall be responsible for the security of the warehouse
facility and shall maintain item control over the inventory .
• Section 2 . The duties of the equipment rental fund accountant shall
be assigned by the Director of Finance/Administrative Services to one
of the accountants in the department . The accountant performing these
duties shall establish and maintain a complete and effective system of
cost accounting records , with the objective of making maximum effective
use of the city data processing system to help assure the maintenance
of an adequate rental rate schedule on all pool-owned equipment . The
incumbent of this position shall also maintain inventory- control over the
garage stock room.
The Fleet Supervisor or his designate shall schedule equipment into the
garage . Any conflict with any department about assigning equipment into
the shop shall be resolved by the Fleet Supervisor , whose decision shall
be binding .
Section 3 . The preparation of the preliminary expenditure budget for
the Equipment Rental Fund for the ensuing year shall be performed by the
Fleet Supervisor based on the recommendations of the Management Advisory
Cormittee as approved by the City Manager .
Section 4 . The Fleet Supervisor shall cause to be prepared and disseminated
a preventive maintenance schedule to all using departments , showing the
schedule when each piece of equipment is to cone into the shop for preventive
maintenance . All. using departments shall adhere to this schedule and ,
failure to do so , will subject the responsible department head to disciplinary
measures .
•
Section 5 . The Fleet Supervisor shall investigate and obtain remedial
action from any department where equipment has been misused or abused .
It shall be the duty of shop personnel to report to the. Fleet Supervisor
immediately any instance of misuse or abuse of city equipment . Failure
of departments to adhere to established operating procedures and maintenance
schedules , and their further failure to adhere to directions of the Fleet
Supervisor to cease and desist from misuse or abuse , shall be reported
promptly by the Fleet Supervisor to the City Manager , with pertinent facts
and recce mendation .
PART II - STANDARDS Olt' OPERATION :
Section 1 . Generally , no vehicle in the Equipment Rental Fund is to
be replaced until it has paid into the reserve for replacement enough
money for its full replacement cost . If expediency dictates an early
replacement before enough money is accumulated in the reserve , the department ( s )
using the equipment will make up the difference between the actual cost
of replacement and the amount paid into the reserve .
Section 2 . The management policy shall be that the designated schedule
of useful life for a particular piece of equipment or class of equipment
is , at best , an estimate and will not constitute grounds for automatic
replacement . Each year , prior to the preparation of the preliminary
expenditure estimates for the next year , the Fleet Supervisor shall meet
and confer with the affected department heads and shall analyze the condition
of each piece of equipment that is scheduled for replacement and , using
cost avoidance projections , shall determine if it will be cost effective
to keep the particular piece of equipment for an extended life schedule .
In making this analysis , the Fleet Supervisor shall confer with the appropriate
department head and shall get the opinion of the department head on the
desirability and consequences of extending the life schedule on the equipment
in question .
Section 3 . If the Fleet Supervisor and the department head , with the
City Manager ' s concurrence , agree that it would be cost effective to keep
a particular vehicle past its currently scheduled useful life , and if the
vehicle has paid into the reserve account enough money to match its then
replacement cost , the rental rate for the extended life schedule shall
cover the operating and maintenance costs pertaining to the vehicle , and
a reduced replacement charge to offset the effect of inflation . Any
deficit imbalance at the actual time of the replacement purchase , shall
be made up by the operating department having primary use of the equipment .
Section 4 . Rental rates shall be adjusted each year to adjust for inflation
and these rates and the method of their determination shall be subject
to the review and approval of the management camittee .
Section 5 . The expense of any equipment betterments and/or additions
for a particular vehicle ( not integral to the vehicle when purchased)
shall be charged to the operating budget of the department requesting
the betterment . When these items wear out , their replacements shall
be charged to the operating budget of the using department upon the request
• and approval of the department head . The acquisition and replacement
of this specialized type of equipment shall not be covered under the
rental schedule of the Equipment Rental Fund . The acquisition , care and
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maintenance , and replacesment of this type of equipment , shall be the direct
• responsibility of the using department head , and all expenses for such
shall be through the operating budget of the using department . ( This
includes light bars and radios ) . When it appears beneficial and cost
effective to add extras to the basic equipment ( for example , heavy duty
tires ) , then such extras can be added upon the approval of the Fleet Supervisor
and the expense thereof will be borne by the Equipment Rental Fund .
Section 6 . Any additions to the Equipment Rental Fleet are to be made
by a specific budgetary appropriation in the operating budget of the using
department and , when purchase has been consummated , the acquired equipment
shall immediately be transferred to the Equipment Rental Fund , whereupon
operation and maintenance of the equipment shall be the responsibility
of the Fleet Supervisor .
Section 7 . The management policy on the accumulation for replacement
shall be based on the premise of a cash flaw system , with enough extra
funds being generated to keep the reserve account in a position to buy
replacement equipment , when needed . Depreciation will be accrued and
recorded on each piece of equipment on the straight line method according
to the designated useful life schedule ; however , the accrued depreciation
will not be fully funded but will be funded on a realistic cash flow basis .
Each year , just prior to the preparation of preliminary expenditure estimates
for the ensuing fiscal year budget , the Director of Finance/Administrative
Services shall cause to be prepared a pro forma analysis of the entire
• fleet operation , extending this projection into that point into the future
when the longest life piece of equipment will need to be replaced . This
pro fonna projection will show the amount of money which will be needed
each of the years in the projection , all the way through to the piece
of equipment with the longest life .
This pro forma analysis shall be presented to the Management Committee
prior to the preparation of the Equipment Rental Fund budget requests
for the ensuing year . The Committee shall review the projections and
shall make appropriate recc mendations to the City Manager for rental
rates . The City Manager will have the final say on the amount of money
to be raised for replacement purposes for any given year and shall promulgate
the rental rate schedule to be effective for budget preparation purposes .
Section 8 . All rolling stock shall be in the Equipment Rental Fund ;
exceptions to this general rule shall be based on the merits of each particular
case . Requests for exception should be routed through the Fleet Supervisor
to the City Manager , giving full details , and the approving decision of
the City Manager shall be required to keep any rolling stock out of the
Equipment Rental Fund . Where there is merit to covering the operating
and maintenance expenditure only on a particular piece of equipment , the
Fleet Supervisor shall be empowered to make this decision . If the department
head is in disagreement , the appeal shall be made to the City Manager ,
whose decision shall be binding .
Section 9 . If by decision of the City Manager , based on the recommendation
of the Fleet Supervisor and/or the department head , a piece of rental
equipment is to be sold off and not replaced , the proceeds of sale by
virtue of R . C . W . 35 . 21 . 088 and P . M . C . 3 . 68 . 050( 2 ) shall remain in the
equipment rental fund . If the Management Committee , on appeal from the
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affected department head , decides that the affected department should
• receive sane credit for the replacement finds paid in but not used for
replacement , it shall be authorized to recommend an adjustment in the
rental rate for the department involved to offset all or some part of
the unused replacement money , and this ree mnendati.on shall be subject
to the approval of the City Manager .
PART III - RULES AND RDGULATIONS :
Section 1 . Using departments shall assure that operators of all equipment
are fully qualified to operate equipment being used and shall , if necessary ,
establish appropriate training programs to deal with deficiencies .
Any operating deficiencies shall be addressed immediately by the provision
of training to make the operating personnel proficient for a particular
piece of equipment . lhpl.oyees with a history of rough and improper use
of city equipment , shall be identified and dealt with as the merits of
the case may require . Using departments shall coordinate proposed training
programs with the Fleet Supervisor .
Section 2 . No unauthroized use of city equipment , whether during working
hours or non- duty hours , shall be permitted . In no case , is any city-
owned equipment to be used for private purposes not connected with an
assigned official job which is a part of the regular city work program .
Furthermore , no city employee is to use or take h(ial city-owned tools
or equipment for private purposes . Failure to heed this restriction
• will lead to prompt disciplinary measures being taken , including the possibility
of dismissal . All using department heads have a responsibility to assure
that all personnel are aware of this policy and fully understand the consequences
of not adhering to it . Newly hired personnel in particular should be
briefed on this policy .
Section 3 . The department heads of using departments shall establish
a secure system for dealing with keys for city equipment under their supervision .
Qtly authorized personnel shall have access to the keys ; employees generally
should not carry keys with them off the job for specific pieces of city
equipment , unless the nature of their assigned responsibility requires
a key to be carried . Department heads have responsibility to see to
it that the privilege of carrying keys is not abused and , further , to
assure that terminating employees turn in any keys they might have been
assigned before the terminated employee gets his/her last pay check .
PART IV - MANAGEMENT ADVISORY CObgffT IF :
Section 1 . There is hereby created a "Management Advisory Committee "
for the Equipment Pool , the membership of which shall comprise the Director
of Public Works (who shall serve as Chairman ) ; Director of Finance/Administra-
tive Services ; Police Chief ; and the Director of Parks and Recreation .
The City Manager shall serve as an ex officio member of the Committee .
Meetings shall be held when directed by the City Manager or when called
by the Chairman . Minutes shall be kept of meetings and copies thereof
• shall go to using departments and to the City Manager .
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Section 2 . The primary duties of the Committee are as follows :
( 1 ) Meet periodically and review and pass judgment on the operation
of the Equipment Pool .
( 2 ) Hear and act on any complaint regarding the equipment pool operation
by recommendation to the City Manager .
( 3 ) Review cost accounting records and advise departments and City Manager
on betterments and replacements .
( 4) Prepare annually , in advance of the preliminary budget preparation ,
a schedule of recommended equipment rental rates for the ensuing
year , for approval of the City ",tanager .
( 5 ) Advise Fleet Supervisor on the "estimated life" schedule on classes
or particular pieces of equipment .
( 6 ) Make recommendations on equipment that should not be covered by
the Equipment Rental Fluid , with special attention to be devoted
to specialized vehicles .
( 7 ) Advise in replacement situations if used vehicles from daily rental
agencies offers opportunities for savings .
( 8 ) Review periodically if shop work is being done in an efficient and
timely manner by comparing actual work time with standard times
• recommended by established and competent sources .
( 9 ) Review periodically the potential for savings by contracting out
repair jobs that require special tools and specialized expertise .
( 10 ) Assist in making recommendations for computerization of records
for management information purposes .
Section 3 . No equipment rental rates shall be effective unless first
approved by the City Manager in advance of their implementation . Rental
schedules , after having been approved by the City Manager , following action
by the Advisory Committee , will be published by the Director of Finance/
Administrative Services and disseminated to using departments .
LFK : pt
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MEMORANDUM
October 9 , 1985
TO : All Department s
FROM : Gary Crutchfield y Xnager
SUBJECT : PURCHASES ASSOCIATED WITH EQUIPMENT RENTAL VEHICLES
Effective immediately , the following steps will be followed when purchases
are made by using departments for parts or accessories associated with
vehicles covered under Equipment Rental .
1 . Departments shall use their own LPO books for required
purchases .
2 . The account number shall be left blank .
3 . The Department Head shall sign the LPO as the approving official
and the employee receiving the service or goods shall sign accordingly .
• The vehicle number shall appear on the face of the LPO or it will be
returned to the Using Department for such .
4 . The LPO should then be routed to the Equipment Rental Shop . Personnel
there will determine whether or not the purchase was a legitimate equipment
rental purchase ; if it is , they will assign an appropriate account number
and pass it on to the Finance Department ; if it ' s not , the LPO will be
returned to the Using Department ( with an explanation ) and will have to
be charged against the Using Department .
Under no circumstance shall any Department charge anything to an open P . O .
established for the Equipment Rental Fund unless specific authority has been
granted by Equipment Rental personnel for that one specific purchase .
Equipment Rental personnel will contact the vendor and acknowledge that
permission has been granted to purchase the given item .
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