Whatcom County Council Public Works and Health Committee

The Equipment Rental and Revolving Fund presentation outlined several significant policy considerations for the county's fleet management. The ER&R operates under RCW 36.33A and is mandated for all road fund equipment, functioning as an internal service fund that charges departments monthly rental rates to cover vehicle maintenance, repairs, and eventual replacement. Peoples explained that rates are calculated using an economic lifecycle analysis that considers original equipment cost, expected maintenance over the vehicle's life, inflation (using Consumer Price Index), and replacement timing. For example, a new F-150 costing $62,000 would require a monthly rate of $1,050 over its 8-year expected life to accumulate enough equity ($76,000) for replacement while covering $23,000 in lifetime maintenance costs. The presentation highlighted a critical issue with the county's ferry boat, where replacement costs have not been adequately built into rental rates over its six-decade lifespan. Council Member Kaylee Galloway, noting the Ferry Advisory Committee has discussed this issue, emphasized it hasn't come close to covering actual replacement costs despite surcharges. This represents a significant unfunded liability as the county plans for a new ferry boat. The surplus process emerged as a major inefficiency in the current system. Vehicles can sit for a year or more before disposal, leading to decreased value through depreciation, weathering, and pest i…

**Brett Peoples (Fleet Manager)** presented the ER&R system as functioning well overall but needing improvements in specific areas. He emphasized that ER&R is not a bank, profit center, or insurance company, but rather an internal service fund operating under strict state mandates. He advocated strongly for streamlining the surplus process, implementing a motor pool system, and creating a crash fund to help departments manage unexpected repair costs. His presentation stressed the importance of the economic lifecycle replacement model over a "run until failure" approach. **Council Member Mark Stremler** inquired about the timing of motor pool implementation and whether any equipment lacks replacement costs in its rental rate. He also explored whether the county could expedite surplus sales by posting prices and selling directly to eager community members rather than going through lengthy auction processes. His questions suggested interest in both improving efficiency and maximizing return on surplus equipment. **Council Member Kaylee Galloway** expr…

**Brett Peoples, on the ferry boat replacement funding gap:** "I can't tell you what it was, you know, obviously six decades ago when they put it in, if that was the intent, I, I can tell you for a fact right now we're not recovering that amount." **Brett Peoples, on the surplus process inefficiency:** "There's a cost to keeping vehicles. I should have to come back and ask if we can keep the one that we've replaced. That I think is a little more logical." **Brett Peoples, on ER&R's role:** "W…

No formal policy changes occurred as this was an informational presentation only. However, the meeting revealed several significant gaps and inefficiencies in current county operations: - Acknowledgment that ferry boat replacement has been underfunded for decades - Recognition that the surplus process is a major bottleneck causing …

### Meeting Overview The Whatcom County Council Public Works & Health Committee met on Tuesday, March 24, 2026, to receive a special presentation from Public Works staff about the Equipment Rental and Revolving Fund (ER&R), which manages the county's fleet of vehicles and equipment. Brett Peeple, Assistant Superintendent for Equipment Services, provided a comprehensive overview of how the county purchases, maintains, and replaces its fleet through this specialized fund. ### Key Terms and Concepts **Equipment Rental and Revolving Fund (ER&R):** A specialized fund mandated by state law that manages all county road fund equipment, vehicles, and supplies. Departments pay monthly rates to use vehicles and equipment, with those rates covering maintenance, repairs, and eventual replacement. **Original Equipment Cost (OEC):** The total cost to purchase a vehicle or piece of equipment and get it ready for service, including radios, lights, decals, and other modifications needed for county use. **Make Ready/Upfitting:** The process of modifying new vehicles after purchase to meet county operational needs, including installing radios, emergency lights, decals, and specialized equipment. **CRAB:** County Road Administration Board, the state agency that governs how counties must operate their equipment rental and revolving funds through RCW 36.33A and WAC Chapter 136-600. **Economic Lifecycle Analysis:** A replacement strategy that determines the optimal time to replace equipment based on operating costs, maintenance expenses, and return on investment, rather than waiting until equipment fails completely. **Equity:** The money accumulated in the ER&R fund for each piece of equipment after collecting monthly rates and paying for maintenance, which should be sufficient to purchase a replacement when the equipment reaches the end of its useful life. **Unit:** Fleet manager terminology for any vehicle, trailer, or piece of equipment managed by ER&R, used to avoid constantly saying "vehicles and equipment." **Damage Chargebacks:** Repair costs for damage that isn't considered normal wear and tear, such as hitting light poles or jumping curbs, which departments must pay for separately from their regular ER&R rates. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Elizabeth Boyle | Committee Chair | | Barry Buchanan | Council Member | | Ben Elenbaas | Council Member | | Kaylee Galloway | Council Member | | Jessica Rienstra | Council Member | | Jon Scanlon | Council Member | | Mark Stremler | Council Member | | Brett Peeple | Assistant Superintendent for Equipment Services/Fleet Manager | | Garrett Randall | Superintendent M&O (Maintenance & Operations) | ### Background Context The Equipment Rental and Revolving Fund represents a state-mandated approach to fleet management that treats county equipment like an internal rental business. Rather than departments owning vehicles outright, they pay monthly rates to ER&R, which handles all purchasing, maintenance, repairs, and eventual replac…