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1.5 Appeal the Designated Division Manager's Decision on Replacement Request If the decision made by the fund Designated Division Manager is not acceptable to the county official, their reasons for disagreement, along with their specific request shall be given to the Director of Public Works for review. The Director of Public Works will either determine in favor of the Designated Division Manager, or provide an alternative decision based on additional information received. The decision of the Public Works Director will be given to the county official for approval. If the department approves the decision, the Designated Division Manager will pursue a replacement on behalf of the county official. If the decision is not approved the county official may appeal the decision to the Board of County Commissioners, whose decision will be final. 2.0 EQUIPMENT RENTAL 2.1 Fund 501 Rental Rates Rates shall reflect 100 percent of annual expense, including depreciation, fuel, labor and parts for repairs and service, insurance, indirect costs and overhead. The amount of collected depreciation per vehicle is defined by its assigned useful life. Equipment purchased under $5,000 is expensed in the year of purchase. A surcharge will be added annually adjusting for anticipated inflation. The surcharge rate will not be applied when developing rental rates for use during declared federal disasters. The rates are subject to annul review by the Board of County Commissioners. The rates for all Fund 501 services will be developed by the Designated Division Manager with support from the Finance Manager and submitted to the County Engineer for approval. The proposed rates will be presented to the Director of Public Works who, as part of the annual budget process, will consider the rates along with the Fund budget and submit a recommended rate resolution to the Board of Kittitas County Commissioners for approval, along with specific budget documents. The Board of Kittitas County Commissioners shall set Fund 501 rates by resolution. Four considerations make up a blended rate per vehicle in the fleet: operational expenses, depreciation, corrections for prior years and a surcharge for equipment replacement. The surcharge accounts for known pending costs such as annual inflation. The Public Works Director determines the surcharge rate in conjunction with the Finance Manager. The surcharge rate is not assigned to fleet vehicles during response to a declared federal emergency. Prior to finalizing annual rates, current federal equipment rental rates are compared to Fund 501 draft rates to inform decisionmakers. Adjustments to the rates are made as needed in order to work toward an equitable status, as one fund should not make a profit over another fund. Equipment purchased under $5,000 will be assigned an annual rental amount. 2.2 Base Vehicle/Equipment The Designated Division Manager shall determine the base vehicle or equipment to be provided and what standard accessories are supplied with the vehicle or equipment. Standard equipment shall include fire extinguisher, first aid kit (users to keep stocked after original installation), and factory/dealership installed accessories ordered with vehicle or equipment as stipulated by the Department Director. Page 5 of 10