2022-02-28-minutes-public-works-study-session

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electrification of the automobile industry is expected to slow the demand on crude oil for fuel. While reductions are anticipated in the passenger vehicle arena, transportation of goods across the transportation system is expected to increase demand as electrification of heavy haul trucks is expected to lag behind passenger vehicles. Given the uncertainty of ten -years of crude oil demand, this ten-year TAMP averages the cost per mile of bituminous surface treatment (chip seal) over the previous ten years and applies the cost at an annual increase of two percent for the planning period. Labor costs are anticipated to continue increasing during the study period. Historically, the County has granted payroll increases in the two to three percent range allowing employees to keep up with the cost of inflation. 2021 has seen the rise of inflation into the six percent range for fiscal year 2021. Best available financial forecasting suggests a moderation of inflation in 2022 returning to pre-COVID 19 levels in 2023. This plan takes 2022 payroll and increases at a rate of two percent per year over the study period. Equipment costs are highly variable compared from one five-year period to the next. PW manages the heavy construction fleet by placing new equipment into an Equipment Rental and Replacement fund. We essentially rent our equipment back as we use it depositing the rental revenue into a replacement account. Our PRESERVATION practices on heavy equipment allow us to keep older equipment in service well beyond an assumed industry standard life term. Owing to our maintenance practice, equipment costs for the study period are specific to individual equipment that we expect to replace during the study period. Expenses Expenses are derived from the following sources: • Bridge inspection records • Road maintenance records • Equipment costs • Facility costs • Labor costs Detailed costing analysis (and associated project expenses) are provided as an APPENDIX 2 for line -item review. In summary, the following ten-year expenditures by category of expense are summarized below in Table 1. Table 1: 10 -year Forecast Expenditures by Expense Category Period PRESERVATION Maintenance Admin/Operations Other (Equipment capital expense) 2022-2031 1 $23,047,891 $48,685,986 $21,844,282 1 $2,189,944 Combined planning period (2022 — 203 1) expenditures total: $95,768,103. Kittitas County Department of Public Works 2022-2032 Transportation Asset Management Plan Janaury 2022: Page 7