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HomeMy WebLinkAboutResolution 25-128-CCGRANT COUNTY COMMISSIONERS AGENDA MEETING REQUEST FORM (Must be submitted to the Clerk of the Board by 12:00pm on Thursday) REQUESTING DEPARTMENT: PUBLIC WORKS REQUEST SUBMITTED BY: Victoria Seim CONTACT PERSON ATTENDING ROUNDTABLE: JOI1tl BI'ISS@y CONFIDENTIAL INFORMATION: DYES 0 NO DATE: 1 Z.23.2025 PHONE: 509-754-6082 ❑Agreement / Contract ❑AP Vouchers ❑Appointment / Reappointment ❑ARPA Related ❑ Bids / RFPs / Quotes Award ❑ Bid Opening Scheduled ❑ Boards / Committees ❑ Budget ❑Computer Related ❑County Code El Emergency Purchase El Employee Rel. ❑ Facilities Related ❑ Financial ❑ Funds ❑ Hearing ❑ Invoices / Purchase Orders ❑ Grants — Fed/State/County ❑ Leases ❑ MOA / MOU ❑ Minutes ❑ Ordinances ❑ Out of State Travel ❑ Petty Cash ❑ Policies ❑ Proclamations ❑ Request for Purchase Resolution El Recommendation ❑Professional Serv/Consultant El Support Letter ❑Surplus Req. ❑Tax Levies ❑Thank You's ❑Tax Title Property ❑WSLCB Resolution regarding an Equipment Rental and Revolving Fund Policy, outlined in �O Eb A' �' the attached Grant County Public Works Operational Policy #26-02. Signatures needed on the resolution page AND on page 1 of the attached policy. If necessary, was this document reviewed by accounting? ❑ YES LEGAL REVIEW: If this documqp legal review,, route tolelgall o review If necessary, was this document reviewed by legal? ❑ YES ❑ NO ❑NO ON/A DATE OF ACTION: (Q • 30 •P.SSililill'-_ DEFERRED OR CONTINUED TO: APPROVE: DENIED ABSTAIN D1: D2 D3: WITHDRAWN: 0 N/A RECEIVED 4/23/24 `m n 2 3 2025 GRANT COUNTY COMMISSIONERS BOARD OF COUNTY COMMISSIONERS Grant County, Washington RESOLUTION FOR AN EQUIPMENT RESOLUTION No. 25- Z $ -CC RENTAL AND REVOLVING FUND POLICY WHEREAS, Grant County Public Works desires to have a formal policy to guide staff in the operation of the Equipment Rental and Revolving (ER&R) Fund; AND WHEREAS, Public Works desires a policy that details Equipment Rental and Revolving Fund procedures including; financial structure, procurement, transfer, replacement, disposition, and provide for annual updates to fees rental rates; AND WHEREAS, A draft Equipment Rental and Revolving Fund policy follows on attached EXHIBIT A. AND WHEREAS, Public Works has requested the Board of Commissioners consider adopting an Equipment Rental and Revolving Fund policy; AND NOW, THEREFORE, BE IT HEREBY RESOLVED THAT the Chant County Board of Commissioners approves the attached Equipment Rental and Revolving Fund Policy #26-02 Amendment for adoption by the Public Works Department. BE IT FURTHER RESOLVED that this resolution shall be effective upon adoption. DATED this Day .30 ( PCQ Lox rk ,Yea ._ m : •cn— AL Nii ;9jNGT4N ATTE����t��������►���� WarbararO.va�s'qquez Clerk of the Board 12, BOARD OF COUNTY COMMISSIONERS Nay Abstain ain GRANT COUNTY, WASHINGTON r ❑ ❑ Rob Joneg"; Chair ❑ ❑ f - �Sndy C r, Vice Chair Kevin Burgess ember Grant County Public Works Operational Policy # 26=02 1. ''nee `+ OE SOL kT`��.0 Public Works Equipment Rental & Revolving Fund 510 Policies and Procedures ER&R ADMINISTRATOR STATEMENT This policy has been prepared by me or was prepared under my direct supervision. I have examined this policy, and I recommend that it be approved. Deputy Public Works Director Appointed ER&R Administrator BOARD OF GRANT COUNTY COMMISSIONERS o , Chai Cindy Carte ,Vice -Chair Kevin Burgess, ber PAGE 1.0 FUND PURPOSE 3 2.0 FUND MANAGEMENT 3 3.0 OVERVIEW 3 4.0 PURPOSE OF ER&R 3 5.0 APPLICABILITY 4 6.0 FINANCIAL STRUCTURE 4 6.1 FUND RESERVE ELEMENTS 4 6.2 EXPENDITURE ACCOUNTS 5 7.0 PROCUREMENT, TRANSFER, REPLACEMENT, AND DISPOSITION 5 7.1 PROCUREMENT 5 7.2 DISPOSITION 6 7.3 INVENTORY 7 7.4 ADDITIONS TO FLEET REQUESTS 7 7.5 CREDITS AND REFUNDS 8 7.6 VEHICLE DAMAGE 8 7.7 ADDING EXISTING VEHICLES TO FLEET 8 7.8 VEHICLE TRANSFERS WITHIN THE ER&R PROGRAM 8 7.9 REPLACEMENT OF VEHICLES/EQUIPMENT 9 8.0 SETTING RENTAL RATES 10 8.1 FACTORS USED TO DETERMINE RENTAL RATES 10 8.2 TERMS USED IN DETERMINATION OF RENTAL RATES 11 EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:2 1.0 FUND PURPOSE This document provides policies and procedures for administration of the Equipment Rental and Revolving (ER&R) Fund. It also provides consistent guidelines for assignment, use, and management of Grant County vehicles and equipment. 2.0 FUND MANAGEMENT The Deputy Public Works Director is responsible for the day-to-day operations of the Equipment Rental and Revolving Fund, including staff management, equipment purchasing, equipment maintenance, and facilities management. However, the County Road Engineer provides technical and budgetary oversight of the fund as required by WAC 136-600. The Deputy Public Works Director typically designates the Fleet Manager to handle the day-to-day operations and the Accounting Deputy to handle continuous budgetary accounting. all , C 0A N IDLIT, A � I All County Departments/Offices strive to provide effective and efficient services to the citizens of Grant County. In serving our customers, we often rely on the use of motor vehicles or other types of equipment. Accordingly, it is critical that we operate and manage the County's fleet efficiently, cost effectively, and that we maximize the fleet's operational readiness and reliability. The Public Works Department maintains an asset record for all vehicles and equipment in the fleet. The asset record helps the Public Works Department capture a complete history including original purchase price, usage, fuel consumption, service, repair information, depreciation, and salvage value. These components are used to determine appropriate vehicle and equipment rental rates. The Equipment Rental and Revolving Fund (ER&R) use is mandated for Road Fund vehicles and equipment by RCW 36.33A. However, all other County Departments/Funds have the option to conduct their own vehicle and equipment management or utilize the ER&R Fund. RCW 36.33A directs the county to establish, by resolution, an "equipment rental and revolving fund" but does not provide specific policies or practices for administering this fund. Grant County Board of Commissioners created an Equipment Rental and Revolving fund by resolution December 22 nd , 1977, resolution number 77-164-CC. EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:3 The Equipment Rental and Revolving Fund was created with the main purposes to: • Manage procurement, maintenance, warranty, and disposition of county fleet vehicles; including parts, materials, fuels, and supplies. • Identify procedures for establishing rates, service levels, replacement of equipment, and services provided within this fund. • Ensure the availability of safe, cost effective, and reliable vehicles and equipment that meet the County's needs. • Establish cost containment procedures that reflect proper fiscal management of these resources and ensure proper equipment maintenance and replacement: including the research and documentation needed to support these activities within governmental regulations and policies. 5.0 APPLICABILITY This policy applies to all Grant County Offices, Departments, and to County Officials and their employees that utilize ER&R resources and services. 6.0 FINANCIAL STRUCTURE The ER&R fund is an internal service fund which is structured to be self-sustaining (See Section 17.0 for a list of relevant RCWs). The goal of ER&R is to establish rates that both optimize costs to the departments and offices of Grant County and maintain the character and viability of the ER&R fund. Revenue collected for replacement of equipment is the property of the ER&R fund which should be invested only into allowable investments and shall not be transferred to other funds. The County Engineer/Deputy Public Works Director (or designee) is responsible for ensuring that ER&R has adequate funds available to cover costs associated with both normal operations and annual equipment replacement needs. ER&R must also have adequate reserves to cover expenses which may be incurred from unforeseen catastrophic events. If applicable, Interest earned by the ER&R reserves will be applied to future fuel system improvements. The ER&R fund is structured in accordance with the "Budgeting Accounting and Reporting System" (BARS). 6.1 FUND RESERVE ELEMENTS • Vehicle and Equipment rental • Reimbursable service • Reimbursable materials • Inflation rate estimates — New Purchases • Surcharge rate — Parts and Materials • Revenue from interest earned if applicable • Revenue from surplus and salvage • Administrative fees EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGER 6.2 EXPENDITURE ACCOUNTS • .1000 Rental Vehicles and Equipment Repair • .2000 Fringe Benefits • .3100 Supplies (parts store inventory) .3200 Fuel Inventory • .3400 Materials Inventory • .3500 Small Tools • .4100 Professional Services • .4200 Communications • .4300 Travel • .4400 Taxes & Operating Assessments • .4500 Rentals/Leases • .4600 Insurance • .4700 Utilities .4800 Repairs & Maintenance (Outside) • .6400 Capital Outlay — purchases Note, other expenditure accounts can be added at the discretion of the County Engineer or Deputy Public Works Director. 7.0 PROCUREMENT, TRANSFER, REPLACEMENT, AND DISPOSITION Each vehicle or piece of equipment managed by ER&R is owned by Grant County and is rented by the Department that utilizes it. For the purposes of this document the term "Operator" is used in reference to the Department utilizing specific vehicles or equipment. 7.1 PROCUREMENT New vehicles and equipment are typically purchased as replacements for older vehicles in the fleet. Replacement schedules are developed by evaluating a combination of factors, including years in service, mileage, cost of operation and available funding. These nese factors, together with anticipated needs of the applicable Department Heads and Elected Officials, determine replacement requirements. Planned replacement of vehicles keeps operational expenses in check, provides safe, reliable transportation for employees, and demonstrates responsible management of County fleet assets. Procurement of new vehicles is completed through one of several methods, in accordance with the Grant County Purchasing Policy # 1601 adopted by the Board of Commissioners. Grant County purchases new equipment by using contracts competitively bid and awarded by other public agencies, provided specific legal conditions are met. When required equipment cannot be found on any existing public contracts, the County procures vehicles using a competitive, sealed bid process. If the estimated value of the new equipment is less than $50,000, the County can also use the approved Vendor's List procurement process. EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:5 If quality used equipment meets the needs of the County, such equipment can be procured at auction or by using existing public contracts available for the purchase of used equipment. The Fleet Manager (or Designee) will coordinate with Departments when procuring new vehicles to make sure the specific operational needs of the Departments are met. The Fleet Manager (or Designee) will work with and communicate the findings with Departments to ensure cost containment procedures are followed that reflect sound fiscal management. The Accounting Deputy (or Designee) will ensure all new purchases are included in the ER&R budget and reviewed for approval by the Board of County Commissioners. The Accounting Deputy (or Designee) will coordinate with Departments to ensure projected annual rental rates are understood and included in their respective budgets. Once new vehicles are purchased and received by the County, the Fleet Manager (or Designee) ensures that they are properly registered and titled under Grant County. Consistent with internal control principles, the Fleet Manager (or Designee) shall retain and safeguard, all titles, ownership documents, and associated records for fleet vehicles and equipment under the supervision of the County Engineer/Public Works Director. 7.2 DISPOSITION All vehicles and equipment in the fleet have general target dates for replacement. The projected vehicle life is set to maximize operational effectiveness and return on investment upon final sale or trade. The anticipated life cycle of a vehicle is critical in establishing accurate rental rates as it establishes the projected period which all operational costs are distributed, and replacement revenue generated. As a vehicle approaches the end of its designated life cycle, final disposition becomes a managerial decision based on a combination of factors. Each vehicle must be considered individually in terms of reliability, maintenance, safety and salvage value. Adequate record keeping, and analysis of vehicle costs are very important to timely and effective disposition. The Fleet Manager (or Designee) will review all pertinent vehicle information and work with department/office managers in making final vehicle disposition decisions. Even though a vehicle is no longer needed by one department/office, it may benefit the County to re -assign or sell (see 7.7) the vehicle to another department/office until it reaches the end of its useful life. When it is no longer cost effective to retain a vehicle in the fleet, it should be disposed of regardless of mileage or age. Once a final decision is made to remove a vehicle from the fleet, the method of disposal must be identified, the timing of disposition determined, and decommissioning procedures completed. The County Engineer/Deputy Public Works Director will work with the County Commissioners to declare vehicles surplus and then determine the best method and location of sale which meets legal guidelines and provides the best potential return to the County. Most county vehicles and equipment realize the greatest return when sold at an online public surplus auction. Occasionally vehicles are sold to other public entities or traded as part of the competitively bid purchasing process. The appropriate County representative will sign vehicle titles releasing the County's interest. EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:6 Once the Commissioners declare vehicles surplus the Fleet Manager (or Designee) will coordinate directly with Departments to have vehicles delivered to the main fleet shop for decommissioning and transport to auction or other sale location. The Fleet Manager (or Designee) will make every effort to ensure required replacement vehicles arrive in concert with disposition of excess vehicles to minimize operational impacts to Departments/Offices. Effective January Ist, 2025, all revenues resulting from the surplus sale of vehicles / equipment return to the ER&R fund and are designated for replacement use by the Department that rented that equipment. In addition, revenues resulting from the surplus sale of vehicles / equipment that are not used for replacement, are designated for the future replacement use by the Department that rented that equipment. 7.3 INVENTORY If a vehicle or piece of equipment is no longer needed by the Department/Office that uses it, the ER&R fund will treat it as surplus. A vehicle or piece of equipment may be removed from service by the County Engineer/Deputy Public Works Director due to condition, dependability, or a repair cost that exceeds the value of the vehicle. Such a determination will be decided only by the County Engineer/Deputy Public Works Director. 7.4 ADDITIONS TO FLEET REQUESTS The requesting Department will be required to fund new or additional vehicle or equipment purchases (excluding replacement of existing vehicles or equipment already managed by ER&R). Requests must be made on the appropriate "letter of request" which will be provided by the Fleet Manager (or Designee). The Fleet Manager (or Designee) will review the request and work with the Department to help provide the information needed for budget approval. The request by another department must be authorized as a capital expenditure in the other department's final budget and signed by the appropriate Elected Official / Department Head before it will be processed. The Fleet Manager (or Designee) will evaluate the equipment request to determine if the equipment is compatible with the ER&R program. If the Elected Official /Department Head is not satisfied with the Fleet Manager (or Designee)'s decision, he/she may submit in writing reasons for disagreement to the County Engineer/Deputy Public Works Director for review. If a resolution is not achieved at this level, the issue will be referred to the Board of County Commissioners for final resolution. All ER&R light vehicles will be either red or white in color, unless otherwise approved by the Director. Specialty Heavy vehicles (such as dump trucks) shall be colored at the discretion of the Fleet Manager (or Designee). A Department may request in writing a vehicle color for their Department. The County Engineer/Deputy Public Works Director will review the request and determine whether it is reasonable or not. Decisions by the County Engineer/Deputy Public Works Director are final. All vehicles will include the following standard accessories: fire extinguisher, and factory/dealership installed accessories ordered with vehicle or equipment. All specialty equipment/upfit materials must be approved in advance by the Fleet Manager (or Designee). EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:7 Approved specialty equipment/upfit materials for new or additional vehicles and equipment must be paid for separately by the requesting Department. All heavy maintenance equipment shall come in the manufacture's standard color. If no color is specified, heavy maintenance equipment shall be construction yellow or fleet white in color. 7.5 CREDITS AND REFUNDS Credits and refunds resulting from sale or surplus of a vehicle/equipment or overages will be applied to the Department that rented that equipment account, effective January I St, 2025. 7.6 VEHICLE DAMAGE The costs for vehicle / equipment damage shall be applied to the Department that rented the equipment account, effective January I St, 2025. 7.7 ADDING EXISTING VEHICLES TO FLEET (Not Previously ER&R Managed) Used vehicles must be evaluated by the Fleet Manager (or Designee) to determine operational and mechanical condition and to check for safety concerns. The Fleet Manager (or Designee) will make a recommendation to accept or refuse the vehicle into the ER&R program based on the condition of the vehicle or equipment, it's estimated remaining life, and any expenses that will be necessary to bring the vehicle up to standards. Replacement rates for used vehicles added to ER&R will be based on the projected replacement cost of a new vehicle, the vehicle's age, and the vehicle's anticipated life span. If a vehicle or piece of equipment has not accrued sufficient replacement funds at, the time of replacement, the requesting Department must pay the balance of the replacement costs or consider a delay in the vehicle replacement schedule. 7.8 VEHICLE TRANSFERS WITHIN THE ER&R PROGRAM A vehicle that is no longer needed by one Department may benefit another. The Fleet Manager (or Designee) may evaluate the possibility of re -assigning and/or re-pur-posing a vehicle which a Department decides is no longer needed. ER&R owns all vehicles within the fleet, so the County Engineer/Deputy Public Works Director may, at their discretion, re -assign any vehicle within ER&R or to another department. The receiving Department/Office will reimburse the ER&R Fund the current value of the transferred vehicle. The receiving department/Office will assume the rental obligation and possibly any upfit costs of the transferred vehicle. The transfer of the vehicle must be approved by the County Engineer/Deputy Public Works Director. 7.9 REPLACEMENT OF VEHICLES/EQUIPMENT The Fleet Manager (or Designee) is responsible for determining when a vehicle or piece of equipment qualifies for replacement. It is the County's desire to keep rental rates as low as possible. Thus, when purchasing vehicles and equipment, the Fleet Manager (or Designee) will place emphasis on purchase price, fuel efficiency, appropriate class size, make, and model. EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:8 The Fleet Manager (or Designee) will coordinate with Departments to decide when the equipment should be replaced. If the Elected Official /Department Head is not satisfied with the Fleet Manager (or Designee)'s decision, he/she may submit in writing reasons for disagreement to the County Engineer/Deputy Public Works Director for review. If a resolution is not achieved at this level, the issue will be referred to the Board of County Commissioners for final resolution. Target replacement considerations are as follows: Type Target Miles Time of Replacement Passenger Cars 100,000 Miles (90,000 to 110,000) 10 Years 1/2 Ton Pickups 100,000 Miles (90,000 to 110,000) 10 Years SUV's 100,000 Miles (90,000 to 110,000) 10 Years 3/4 & 1 Ton Pickups 100,000 Miles (90,000 to 110,000) 10 Years Supervisor/Foremen 100,000 Miles (90,000 to 110,000) 5 Years Diesel Pickups 150,000 Miles (140,000 to 160,000) 10 Years Dump Trucks 250,000 Miles N/A Distributers N/A 10 Years 5t Wheel Trailers N/A 15 Years Construction Equip Varies Varies Patrol Vehicles 100,000 Miles (90,000 to 110,000) 4 Years Special Operations Vehicles Grant County Sheriff's Office • 100,000 Miles (90,000 to 110,000) 4 Years +/- Shared equipment will be evaluated on a case -by -case basis. Outliers will be evaluated on a case -by -case basis. (Severe service or Lemons) Replacement vehicles and equipment, including upfit materials are to be of a similar size and value as the original vehicle or equipment. If the requested vehicle, equipment, or upfit materials are an appreciable upgrade, a cost overrun contribution will be required from the requesting Department/Office and approval from the Elected Official/Department Head and the County Engineer/Deputy Public Works Director. If the original vehicle or equipment is traded -in, surplus, or otherwise disposed of before fully depreciated, the requesting Department/Office may be required to pay the outstanding balance before purchasing the replacement vehicle or equipment. A statement of transaction will be provided to the owning Department/Office when the account is settled. 8.0 SETTING RENTAL RATES The basis for the establishment of equipment rental rates is found in RCW 36.33A.040, which states, "Rates for the rental of equipment owned by the fund shall be set to cover all costs of maintenance and repair, material and supplies consumed in operating or maintaining the equipment, and the future replacement thereof. The rates shall be determined by the County Engineer or other appointee of the County Legislative Body and shall be subject to annual review by the Legislative Body". Fuel consumed by Non-ER&R Departments and all ER&R Departments will be paid for and accounted separately by that Department. EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:9 The County Engineer/Deputy Public Works Director will develop and recommend rates for all vehicles and equipment annually. Rates shall reflect all applicable annual expenses, including inflation, labor and parts for repairs and service, insurance, indirect costs, and overhead. Rental rates for all vehicles are calculated per class of vehicle (such as pickups, graders, heavy trucks). Finances for vehicles and equipment will be tracked individually for operation, maintenance, and replacement. Vehicles and equipment will be grouped with like units when possible. Rental rates for grouped vehicles will be averaged per mile/hour. Departments will be billed a monthly flat rate. Grouped vehicles may be considered for a monthly rate that pays for usage by the mile, day, or month. The County Engineer/Deputy Public Works Director will make adjustment within any year to reflect rapidly changing cost factors. If deemed appropriate, the County Engineer/Deputy Public Works Director will present interim adjustments to the Board of County Commissioners for review. The Board approves rental rates at the beginning of each year. Certain factors including but not limited to increased expenses or changes in usage patterns may warrant an adjustment of rental rates. 8.1 FACTORS USED TO DETERMINE RENTAL RATES Cost of Operation • Service Items — tires, brakes, fluids, etc • Repairs and repair parts • Service and repair labor Cost of Replacement • Actual replacement cost • Additional added equipment • Inflation component Cost of Overhead • Accounting • Tracking and scheduling • Warranty administration • New vehicle specifications and bidding • Insurance • Facility overhead • Crash and accident history 8.2 TERMS USED IN DETERMINATION OF RENTAL RATES Operational Cost is based on a five-year average of the yearly total expense for the vehicle/equipment or group of vehicles. For new vehicles, three years are added to project the operational cost average. The base rate and average miles/hours using three years of historical data from similar equipment. The average operational cost is used to formulate the monthly operations and maintenance portion of the rental rate. Usage is based on a five-year or three-year average of the mileage or hours that have been carried on the vehicle or equipment. EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:10 Yearly Replacement Cost is based on the projected replacement cost less salvage value, divided by the life cycle of the vehicle. The replacement cost is used to formulate the monthly replacement portion of the rental rate. Formula: (Projected Replacement — Salvage Value) Projected Life Cycle —Yearly Replacement Cost. Revenue is the total amount collected based on the formulated rental rate. Department/Office. Most issued vehicles pay a flat monthly rate per vehicle. Some Public Works vehicles pay usage by the hour and are billed monthly. Some Loaned and Motor Pool vehicles pay for usage by the mile and are billed accordingly. Revenue collected is first applied to the actual total expense of the vehicle or vehicle group. All excess funds are to be designated for replacement use by the Department that rented that vehicle / equipment. This ensures that any unforeseen or large maintenance expenses are covered before applying the additional revenue toward replacement. Adjusted Rate is the adjustment to the base monthly rate to compensate for under or over collection of funds throughout the life of the vehicle or equipment. The Fleet Manager will at a minimum every year, and will recommend review rates, adjustments as needed. Life Cycle Date is the set point for the life cycle to begin (date when the vehicle or equipment was put into the ER&R program). Life Cycle is the number of years estimated to be the useful life of the vehicle or equipment (period in which replacement funds are collected). Projected Replacement Cost is the expected cost to replace a vehicle or equipment at the end of its life cycle (historical market trends for a particular vehicle or piece of equipment are used to create an estimate). Salvage Value is a projection of what a vehicle or piece of equipment's value will be at the end of its life cycle. Salvage value for vehicles is estimated based on either current market value of the particular vehicle or by using "straight line depreciation" with replacement cost. Salvage value for heavy equipment is estimated based on current market value or historical market trends. EQUIPMENT RENTAL AND REVOLVING FUND #26-02 EFFECTIVE 01-01-2026 PAGE:11