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 ensure all licensing and insurance is in place as required and works with various user groups to maintain a preventative maintenance program that meets or exceeds the Ministry of Transportation regulatory requirements. The fleet service also manages fuel procurement and dispensing facilities, as well as rental agreements for additional vehicles and equipment during peak seasonal demand periods. 

This portfolio is categorized into four components, because of differing life spans and maintenance strategies. They are light duty vehicles, medium duty vehicles, heavy duty vehicles, and other equipment.

Inventory

As fleet are due for replacement, they are anticipated to be converted to lower carbon emissions where possible, 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 an eco-friendlier model. These vehicle types are still relatively new to the industry and replacement costs will continue to fluctuate over the next several years. As part of the annual budget process, County staff obtain current replacement costs for assets managed under this portfolio to ensure the most accurate costing is available for decision making purposes.

Condition

The percentage of assets in poor or critical condition has decreased from 46% as reported in the 2024 AMP to 24%. The percentage of assets in good or excellent condition has increased from 24% as reported in the 2024 AMP to 38%.

Longer delivery times that may result from outside industry pressures, result in fleet remaining in service longer than originally anticipated, resulting in lower average condition ratings. Through the annual business plan and budget cycle, staff identify assets with long delivery times to request early procurement approval to more closely align new unit delivery times with anticipated replacement timing.

Key Performance

Fleet and Equipment assets will be maintained and replaced in a manner that maintain safe and functioning assets ensuring continuity of service.

Proposed Levels of Service Review

Information on the scenarios reviewed is contained within the AMP document. The analysis doesn’t consider opportunities for right-sized vehicles and equipment for continued service delivery; this exercise continues to be completed with each budget process. The result under all scenarios is a similar average condition, risk and number of assets in poor or critical condition, which is expected due to the short estimated useful lives of assets in this portfolio.

Based on the analysis, staff are recommending Scenario C, the proposed level of service target is 105% funded. Staff review replacement costs for each budget for all assets under this portfolio. This approach should result in fewer significant replacement cost increases with a reduced need for significant increases over the annual investment requirement to ensure a sufficient reserve balance over the long term.

Funding Gap Analysis

Planned Investment Level
Inflationary estimates are included in the table below in the required investment beginning in 2026 and planned investment figures beginning in 2028, however actual replacement costs are determined with each budget cycle, and requirements may not align with these estimates. 

Proposed Investment Change
A decrease of $80,000 is proposed in 2026 and 2027, to reduce the planned investment from the 2025 budget of 114% funded to the proposed investment level of 105% funded. Maintaining the reserve helps ensure sufficient funds are available for lifecycle needs as debt funding is not an ideal funding source for this portfolio. 

Comparison of required investment to proposed investment (millions)