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KITTITAS COUNTY <br />DEPARTMENT OF PUBLIC WORKS <br />PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS <br />2023 STUDY SESSION STAFF REPORT <br />STUDY SESSION DATE: March 27, 2023 <br />TOPIC: Equipment Rental and Revolving Fund — Replacement Policy <br />ACTION REQUESTED: Direct Staff <br />LEAD STAFF: <br />Mark R. Cook <br />RECOMMENDATION: <br />Direct staff prepare enabling legislation. <br />BRIEFING SUMMARY: <br />• Public Works (PW) formulated an equipment rental and revolving fund (Fund <br />501- ER&R) in the early 1990s. <br />• The fund has operated for thirty plus years without a formal equipment <br />replacement policy. <br />• The County Road Administration Board (CRAB) is now requiring a formal policy <br />from PW. <br />• A draft policy (EXHIBIT 1) is attached for Board of County Commission (BoCC) <br />consideration. <br />BACKGROUND: <br />County PW agencies have been required to create, and operate, equipment rental and <br />revolving funds for over thirty years in the state of Washington — pursuant to Revised <br />Code of Washington at Chapter 36.33A (EXHIBIT 2). Recently, CRAB noticed the <br />County Engineer of their desire forcing PW to create a formal policy rather than relying <br />on existing business practices (EXHIBIT 3). <br />DISCUSSION: <br />While PW has operated its ER&R for over thirty years, the recent retirement of Finance <br />Director Remeto underscores the need to formalize operational characteristics of Fund <br />501. The need is underscored by recent discussions regarding future expansion of the <br />Fund for use by all departments of the BoCC and elected offices. The policy has been <br />written to codify existing business practices and address recent questions asked by the <br />Finance Division of PW. <br />During policy formulation, .FW examined numerous city and county policies from around <br />the state. Staff has attempted codify existing business practices and anticipate future <br />demands on Fund 501. The policy will likely be amended at some point in the future as it <br />begins implementation second quarter of 2023. Significant inflation the past several <br />Page 1 of 5 <br />Public Works "Work Session Staff Report", 2023 <br />