Fleet and Equipment
Fleet services is an internal service that supplies right sized vehicles and equipment to program areas to support service delivery, while advancing related energy programs and initiatives. Fleet services provides all the licensing and insurance and maintains a preventative maintenance program that meets or exceeds the Ministry of Transportation regulatory requirements. The fleet service also manages rental agreements for additional vehicles and equipment during peak seasonal demand periods.
This portfolio is categorized into four components, as a result of differing life spans and maintenance strategies. They are light duty vehicles, medium duty vehicles, heavy duty vehicles, and other equipment.
Inventory
| Asset Component | Unit | Current Inventory | Replacement Cost |
|---|---|---|---|
| Light Duty | each | 85 | $4,849,100 |
| Medium Duty | each | 18 | 1,715,800 |
| Heavy Duty | each | 29 | 11,392,900 |
| Equipment | each | 49 | 10,750,800 |
| Total Replacement Cost | $28,708,600 | ||
As fleet are due for replacement, they are anticipated to be converted to lower carbon emissions through alternative fuels and energy efficiency in support of the County’s 100% renewable goal. As such, the replacement costs are based on cost of replacement with a more eco-friendly model. These vehicle types are still relatively new to the industry and replacement costs will continue to fluctuate over the next several years.
Condition
The County utilizes a methodology referred to as Vehicle Replacement Rating (VRR) to assess the condition of assets management under this portfolio.
Some fleet and equipment delivery times have significantly increased as a result of the pandemic, and have yet to return to pre-pandemic delivery times. Lead times associated with eco-friendly fuel alternatives continues to be longer than their carbon-based counterparts. The longer delivery times result in fleet remaining in service longer than originally anticipated, resulting in lower average condition ratings. This trend is anticipated to persist in the near future, after which the County will see a more normalized replacement cycle.
Key Performance
| Key Service Attribute | LOS Statement | Performance Measure | 2022 | 2023 | Target |
| Quality | Maintaining assets in an acceptable condition | % of light, medium and heavy duty assets in fair or better condition | 58% | 48% | TBD |
| Reliability | Providing safe and reliable vehicles and equipment | Average Vehicle Reliability Rating (VRR) of fleet and equipment | 10.12 | 10.40 | TBD |
| Environmental Stewardship | Providing fleet services that are environmentally conscious | % of fleet and equipment using alternative fuels | 24% | 34% | TBD |
Funding Gap Analysis
This portfolio is currently funded by an annual contribution to the Fleet reserve for each unit, by the service area utilizing the asset along with an annual allocation of interest earned. Contributions from the service areas are funded from both the annual levy and water and wastewater rates.
The graph illustrates the anticipated asset management 10-year lifecycle needs (expenditures) and anticipated funding for the 2024 to 2033 period, reflecting an approximate $6.1 million surplus in funding availability over the period.
The reserve balance depicted falls short of the calculated amount earmarked for current assets considering their lifecycle stage. During the 2024 Business Plan and Budget process staff conducted a thorough review of current replacement costs and annual charges incurred thus far in the unit’s lifespan. Adjustments exceeding the current annual costs were applied to some units. However, due to potential implications on the levy and water and wastewater rates, the entire deficit might not be recovered before the unit’s replacement.