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Home My WebLink AboutWD-10-85 V1 4 CORPORATION OF THE TOWN OF NEWCASTLE PUBLIC WORKS DEPARTMENT R. DUPUIS, P. ENG., DIRECTOR HAMPTON,ONTARIO TEL.(416)263.2231 LOB 1J0 987.5039 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF FEBRUARY 18, 1985. REPORT NO. : WD-10-85 SUBJECT: SUPPLEMENTARY REPORT 1985 PUBLIC WORKS EQUIPMENT RATES RECOMMENDATION: It is respectfully recommended: 1. That this report be received; and, 2. That the 1985 Schedule of Equipment Rates , as recommended in Report WD-4-85, be approved. i BACKGROUND: General Purpose and Administration Committee Resolution 88-85 referred Report WD-4-85, 1985 Public Works Equipment Rates, for a more detailed report and further dialogue. Concerns were expressed by Committee in respect to interest earned on invested funds and interest not being credited to the Fleet Reserve. As well , suggestions that if the rates remained the same, the Public Works Department would be able to perform more work for the same expenditure. . . . .2 V l Page 2 REPORT NO. WD-10-85 REPORT: The Treasury Department has advised that interest earned on invested funds is shown as Investment Income Account Number 6540, and is used to offset total budget expenses. If the interest earned on the Fleet Reserve portion of the money invested was redirected to the Fleet Reserve, it would serve to increase the amount of fleet reserve, but reduce the investment income portion of the revenue budget. Using an approximate residual value of $400,000. in the Fleet Reserve, invested at nine percent (9%) , the income would be approximately $36,000. per year. This amount translates into about one percent (1%) on the tax rate, so in theory, the tax rate would be increased by that amount to realize an interest credit to the Fleet Reserve. The revenue required to operate and maintain the fleet is obtained from the equipment rates which are applied to the activities and projects that utilize the equipment. These activities may be categorized in the non-subsidizable, fifty percent (50%) , eighty percent (80%) , ninety percent (90%) , and one-hundred percent (100%) , subsidizable range; i .e., sidewalk maintenance, snow plowing, bridge and culvert maintenance, connecting link maintenance, and work for others. By reducing the rental rates, the revenue from subsidizable activities would be reduced and this alternative is considered undesirable by individuals involved in municipal fleet management. In general , fleet management personnel feel that the maximum rental rates established by the M.T.C. are not adequate to purchase, maintain and operate a fleet. Fleet managers like the Town of Newcastle are extending the replacement periods for vehicles in an attempt to reduce the annual replacement purchase costs. The private rental rates for similar equipment far exceeds the M.T.C. rates. Page 3 REPORT NO. WD-10-85 In 1985, staff propose to redirect a portion of the Division 1 Yard maintenance costs, as well as the Public Works Clerk' s salary, to the Fleet Overhead portion of the budget. This would reduce the Public Works Overhead Budget by approximately $15,000. and would account for the expenditures more accurately. The same rationale being applied to this proposal is that money derived from subsidizable activities provides the revenue to accommodate overhead and garage maintenance costs. If the Town were to approve lower equipment rates, they would be taking a chance on losing subsidizable funds in a year when the subsidy allocation was not maximized. In the future, Committee and Council may wish to redirect any surplus funds from the equipment reserve to finance other expenditures. Ultimately, the Town would be losing flexibility in fleet and financial management. It is, therefore, recommended that the 1985 Public Works Equipment Rates, as proposed in Report WD-4-85, be approved. Respectfully submitted, R.G. Dupuis , P. Eng. , Director of Public Works. DTG:jco Vr-6 <) CORPORATION OF THE TOWN OF NEWCASTLE PUBLIC WORKS DEPARTMENT R. DUPUIS, P. ENO., DIRECTOR HAMPTON,ONTARIO TEL.(416)263.2231 LOB 1JO 987-5039 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF FEBRUARY 4, 1985. REPORT NO. : WD-4-85 SUBJECT: 1985 PUBLIC WORKS EQUIPMENT RATES RECOMMENDATION: It is respectfully recommended: 1. That this report be received; and, 2. That the attached 1985 Schedule of Equipment Rates be approved. BACKGROUND: Each year, the Town of Newcastle' s Public Works Department updates its Schedule of Equipment Rates to conform to the Ministry of Transportation and Communications Directives MRA-135, maximum subsidizable rates for municipally-owned equipment. The rental rates are established "door-to-door" and are applied on an hourly basis. .. .2 Page 2 REPORT NO. WD-4-85 The definition of subsidizable time is the recorded time from when the machine leaves its base to do productive work in a subsidizable activity until it returns to base, or otherwise ceases to be part of the productive equipment required to perform that activity. REPORT: The Ministry Directive provides rates for all of the various pieces of equipment available to municipalities which can be viewed at the Public Works Offices. From this Directive, a schedule of equipment rates applicable to the Town of Newcastle has been prepared. The revised rates , which are about five percent (5%) greater than 1984 rates, reflect increased depreciation allowance, insurance, repairs, fuels, interest and overhead costs, but do not include operator costs. As garbage packers are not utilized on activities normally subsidized by the M.T.C., staff are recommending that the 1985 rates for these units remain unchanged. The i 1985 rates are equal to the 1983 rates. When decisions are finalized in respect to major upgrading of the garbage collection fleet, the rates will need to be further reviewed at that time. . . . .3 Page 3 REPORT NO. WD-4-85 The Equipment Reserves at the end of 1984 were: Public Works Equipment 669,033.10 Garbage Equipment 124,851.51 Respectfully submitted, f R.G. Dupuis, P. Eng., Director of Public Works. DTG:jco January 28, 1985. Attachment RATES FOR EQUIPMENT RENTAL TOWN OF NEWCASTLE, PUBLIC WORKS DEPARTMENT Page 1 1985 G.M.C. 85) MAKE & YR. MODEL H.P./GVW MACHINE NUMBER RATE/HR EQUIPMENT ATTACHMENT RATE/85 GRADERS: 35,000 7217-0980-85513- 17.80 Plow, Wing, Sander I.H.C. (85) hampion (78) 740 N.A. 214 7217-0980-00515-5 28.20 Dozer Blade 1.25 Champion (75) D600 N.A. 160 7219-0980-75533-1 28.20 Snow Wing 7.50 Champion (73) D600 N.A. 209 7217-0980-00002-5 28.20 Snow Plow 3.30 Wabco (73) 555 N.A. 150 7219-0980-00002-1 25.75 Ford (83) L8000 35,000 7219-0980-83531-7 17.80 Snow Plow & Wing Ford (83) 112 TON TRUCKS: 35,000 7219-0980-83535-3 17.80 Reverse Plow Ford (82) GMC 85 TC10903 6,000 7217-0980-85512-9 3.30 Ford (79) GMC (85) TC10903 6,000 7217-0980-85501-2 3.30 Ford (78) GMC (85) TC10903 6,000 7219-0980-85532-1 3.30 Ford (76) Ford (83) F150 6,000 7217-0980-83512-4 3.30 I.H.C. (76) Ford (83) F150 6,000 7218-0980-83522-0 3.30 Ford (74) Ford (83) F150 6,000 7219-0980-83532-6 3.30 Ford (74) Chev (80) CC10903 6,000 7217-0980-00501-1 3.30 Ford (79) F150 6,000 7217-0980-00502-0 3.30 Ford (79) F150 6,000 7219-0980-00532-0 3.30 DUMP TRUCKS: G.M.C. 85) TC31003 10,000 7218-0980-85540-3 4.95 I.H.C. (85) 1954 35,000 7217-0980-85513- 17.80 Plow, Wing, Sander I.H.C. (85) 1954 35,000 7219-0980-85541- 17.80 Dual Dump,Rev.Plow/Wing Ford (84) L8000 35,000 7218-0980-84521-9 17.80 Dual Dump,Rev.Plow/Wing Ford (84) L8000 35,000 7218-0980-84523-7 17.80 Dual Dump,Plow & Wing Ford (83) L8000 35,000 7219-0980-83536-2 17.80 Plow Ford (83) L8000 35,000 7219-0980-83531-7 17.80 Snow Plow & Wing Ford (83) L8000 35,000 7219-0980-83535-3 17.80 Reverse Plow Ford (82) L9000 35,000 7217-0980-00517-3 17.80 Snow Plow & Wing Ford (79) L9000 35,000 7217-0980-00511-9 17.80 Snow Plow & Wing Ford (78) F350 10,000 7218-0980-00540-2 4.95 Ford (76) L900 35,000 7217-0980-00016-9 17.80 Sander I.H.C. (76) 2070A 29,900 7217-0980-00017-8 15.85 Snow Plow & Wing Ford (74) L900 35,000 7217-0980-00015-0 17.80 Sander Ford (74) L900 29,900 7217-0980-00014-1 15.85 Sander RATES FOR EQUIPMENT RENTAL NEWCASTLE, PUBLIC WORKS DEPARTMENT Page 2 1985 MAKE & YR. MODEL H.P./GVW MACHINE NUMBER RATE/HR EQUIPMENT ATTACHMENT RATE/85 DUMP TRUCKS C NT.0. Ford (82) L9000 35,000 7219-0980-00539-3 17.80 Snow Plow & Wing Ford (80) L800 27,500 7218-0980-00528-8 10.15 Reversible Plow Sander 11.10 Ford (79) L9000 35,000 7219-0980-00538-4 17.80 Snow Plow & Wing G.M.C. (78) CC66403 29,900 7218-0980-00524-2 15.85 *21.90 (as utility truck) Ford (76) L900 35,000 7218-0980-00017-6 17.80 Snow Plow & Wing I.H.C. (76) 2070A 29,900 7219-0980-00027-2 15.85 Snow Plow & Wing WINTER CONTROL: Sanders 7219-0980-00200-1 Sanders 11.70 Plows 7219-0980-00300-0 Underbody Plow 6.95 Snow Plow & Wing 9.75 Reversible Plow 7.50 Dual Dump 9.00 Plow 7.50 V` RATES FOR EQUIPMENT RENTAL TOWN OF NEWCASTLE, PUBLIC WORKS DEPARTMENT Page 3 1985 10.30 MAKE & YR. 3.60 MODEL_ H.P./GVW MACHINE NUMBER RATE/HR EQUIPMENT ATTACHMENT RATE/85 GARBAGE PACKER: Post Hole Aug.(Danuser) 1.35 Garbage Packers (80) 25cu.yd.H.O. 50,000 7218-0980-00527-9 19.65 I.H.C. (76) 20cu.yd. 29,900 7218-0980-00029-2 13.95 Mower (74) 20cu.yd. 27,000 7218-0980-74526-5 13.95 7219-0980-00013-8 10.30 Loader-5/8yd=1.05/lyd = 1.15 SMI Snow Blower (79) LOADER: 118 h.p. 7217-0980-00542-2 35.70 CTa-rk (83) 4-71T 2 112 cu.yd. 7219-0980-83008-1 25.90 Trojan (75) 1700 2 cu. yd. 7217-0980-00003-4 20.70 Case Backhoe (72) D5806 7219-0980-00019-2 18.20 Trojan (72) 1700 2 cu. yd. 7218-0980-72009-5 20.70 I.H.C. Drott (70) 150 Drott 55 h.p. 7218-0980-00150-3 14.80 M.F. (82) 408 Wheeled 44 h.p. 7219-0980-00004-9 10.30 Sweeper 3.60 Post Hole Aug.(Danuser) 1.35 Blade, towed 3pt. hitch .95 I.H.C. (77) 2400 Wheeled 54 7217-0980-00007-0 11.35 Mower 1.60 I.N.C. (67) 434 Wheeled 40 h.p._ 7219-0980-00013-8 10.30 Loader-5/8yd=1.05/lyd = 1.15 SMI Snow Blower (79) 2200 118 h.p. 7217-0980-00542-2 35.70 i� RATES FOR EQUIPMENT RENTAL TOWN OF NEWCASTLE, PUBLIC WORKS DEPARTMENT Poye 4 1985 MAKE it Yk - MODEL H.P./GVW MACHINE NUMBER RATE/HR EQUIPMENT ATTACHMENT RATE/85 STEAMER: Marten —— Trailer TM 15 Ton --- - Simcoe Malsbary (69) 30 h.p. 7219-0980-00022-7 17.15 Simcoe Malsbary (68) 30.h.p. 7218-0980-00001-4 17.15 Simcoe Malsbary (62) 30 h.p. 7217-0980-00012-3 17.15 17.15 --- (79) Warner-Swasey 7217-0980-00548-6 SPRAYER: SMI (77) Leaf Vacuum ---'— ------- ean (73) 600 gal. 7219-0980-00021-8 14.90 Mobi a (77) 2TE4 7218-0980-00577-8 27.20 OTHERS: Marten (85) Trailer TM 15 Ton 7218-0980-85008-X 8.50 Home Made (83) 1/2t Single Axle 7219-0980-83022-3 1.10 Home Made (81) F.F.Trailer(tm) 7218-0980-00009-6 8.50 Brush Chip. (80) JEY16 7217-0980-00552-9 17.15 Gradall (79) Warner-Swasey 7217-0980-00548-6 41.70 1/2-5/8 cu.yds.wheeled SMI (77) Leaf Vacuum 7218-0980-00003-2 4.65 Craig (70) F.F.Trailer(tm) 7218-0980-00008-7 8.50 6-15 tonnes tandem Water Pumps (2) 3" 7217-0980-00544-0 3.90 Water Tanks (2) 1000 gal. 7217-0980-00545-9 2.80 Chain Saws 7217-0980-00543-1 2.90 Acetylene Torches (3) 7217-0980-00546-8 11.90 Arc Welders Electric 300 amp. 7217-0980-00547-7 2.45 Spray Patch Unit Homemade 7218-0980-83006-7 7.05 Weed Eaters 7217-X-553-X 1.35 Demolition Hammer 7217-X-554-X 1.55 Plate Tamper 7217-X-555-X 4.50 Line Painter 7211-X-556-X 5.05 C, �I: