TAMRMS#: B06
8.6
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Public Works Mobile Equipment Replacement Plan - PW-001
Notice given by: Councillor Biermanski
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BUDGET POSTPONED MOTION:
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That the Public Works Mobile Equipment Replacement Plan - PW-001 is removed from 2023 10-Year Municipal RMR Capital Plan.
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Administration’s Understanding of the Intent of the Motion:
That the entirety of the mobile equipment replacement plan (PW-001) which includes all City wide (Except Transit) vehicle and equipment life cycle and end of life replacements be removed from the 10-Year Municipal RMR Capital Plan.
If the intent of the motion is only to not approve funding for the items included in the 2023 budget ask (and not to remove the entire charter from the 10 year plan), the motion should be re-worded as follows:
“That no funding be provided as part of the 2023 budget to support items identified in the mobile equipment replacement plan (PW-001) and that these items be moved to future years for consideration.”
Operational or Organizational Impacts if Motion is Approved:
The removal of the RMR would eliminate the purchase of equipment and vehicles to replace those which have reached the end of their service life. The impact would lead to additional operational costs (contracting, materials and staffing to maintain items past their serviceable life) for the Fleet branch of Public Operations and/or not having serviceable equipment and vehicles to meet service level needs of the departments. This Charter supports all branches that have vehicles and equipment (except Transit).
Financial Implications of Motions:
If the proposed alternate motion is moved:
1. The removal of the Charter for the 2023 year would lead to extending vehicles and equipment lifecycle to the following year which would then require an additional funding in 2024 to make up for the previous year's shortfall as well as an increase to the 2023 fleet operational budget to allow for additional costs of maintaining aged equipment and vehicles. As this charter is intended to be funded from a designated reserve, these dollars would just remain in the reserve for future use. There would be no reduction to the tax rate if this motion was approved.
If the original motion is moved:
2. The removal of the Charter indefinitely would lead to the fleet operations budget being unsustainable due to insufficient capacity in the garage and Service Level delivery would be impacted due to downtime of managing service levels with insufficient assets to support the service delivery. As this charter is intended to be funded from a designated reserve, these dollars would just remain in the reserve for future use. Council would need to direct the future use of these reserve funds. There would be no reduction to the tax rate if this motion was approved.
Stakeholder Consultations:
N/A
Background:
This plan supports the replacement of over 300 vehicles and pieces of equipment valued at over $30,000,000.00 including: fire trucks and ambulances (Emergency Services); cars (Enforcement Services and Engineering); plow trucks, trucks, refuse vehicles, graders, loaders, tree trucks, brush chippers, ice resurfacers, skid steers, back hoes, vac trucks and mowers (Public Works). The replacement plan is reviewed annually, and life cycle adjustments are made using several different criteria within the City’s policy. Units replaced are evaluated annually based on cost per unit, reliability, technological change and operational enhancement.
Not replacing vehicles and equipment in a timely fashion will impact the requirement to meet service levels as established by Council.
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Report Date: June 7, 2022
Author: Jay Mason
Committee/Department: Public Operations
Deputy Chief Administrative Officer (Interim): Diane Enger
Chief Administrative Officer (Interim): Kerry Hilts