STAFF REPORT: PARKS TRUCK PURCHASE – 2019 CHEVY SILVERADO 1500 REPLACEMENT

PARKS TRUCK PURCHASE – 2019 CHEVY SILVERADO 1500 REPLACEMENT

RECOMMENDATION:

THAT Council approve the purchase of a 2024 Chevrolet Silverado 1500 work truck from Jenner Chevrolet Buick GMC Ltd. (View Royal) in the amount of $51,200 net of GST to replace the 2019 Chevrolet Silverado 1500 work truck, funded from the Machinery and Equipment reserve and ICBC;

AND THAT the 2024-2028 Financial Plan be amended accordingly.

ALTERNATIVE OPTIONS:

Option #2: Council may direct staff to seek an equivalent used work truck to replace the 2019 Chevrolet Silverado 1500. However, doing so extends the currently reduced level of service until an equivalent truck is found. Financial impacts will also occur as future rental truck costs may not be covered by the ICBC claim, thus potentially offsetting any capital cost savings with purchasing a used truck.

PURPOSE:

The purpose of this report is to seek authorization to purchase an equivalent new truck to replace the 2019 Chevrolet Silverado 1500 as a result of a motor vehicle incident that has resulted in the truck being written off.

BACKGROUND:

The motor vehicle incident occurred in late July, after the last Council meeting before the summer break. ICBC confirmed in late August that the Town would be awarded a write-off settlement for the vehicle as a result of the damage inflicted upon it.

The Town is currently renting a work truck on a temporary basis (costs recoverable in accordance with the ICBC claim) and time is of the essence to purchase a work truck to reinstate the Parks department’s level of service.

ANALYSIS:

Impacts and implications can be summarized as follows:

Community Impact:

• Time is of the essence to purchase a Parks truck to recover the department’s level of service. The autumn season sees a change in priorities that requires all trucks to be in use (examples include the transportation of staffing and equipment hauling needs for leaf collection, mowing, landscape prep for the cooler season).
• There are currently no equivalent electric vehicle alternatives to replace the 2019 Chevrolet Silverado 1500 as there are no available long box options. However, staff will be bringing forward a report to Council in the near future to recommend the purchase of an EV truck to replace the 2010 Nissan Frontier (to be replaced this year).

Financial Implication:

• There are currently little to no equivalent used trucks available, and of the used trucks that may be suitable, significant compromises would be required (risk of accident history and higher mileage creating higher maintenance costs, older vehicles have significantly poorer fuel economies, no warranty). Continued searches for a used vehicle can also risk accruing truck rental costs beyond the compensable amount allowed under the ICBC claim.
• The cost difference between new and used is also nominal: research suggests a 20-30% savings only that would be quickly offset by the issues described above.
• Therefore, staff recommend the purchase of a new 2024 Chevrolet Silverado 1500, direct awarded to the Jenner Chevrolet dealership in View Royal in accordance with the Town’s Purchasing Policy and with the essence of time in mind ($51,200 net of GST). An additional $7,500 is required for the installation of additional equipment (logos, decaling, truck box rack and additional lights). Therefore, this purchase will require a budget amendment as the replacement of the 2019 Chevrolet is not planned within the next five years. On top of ICBC’s write-off agreement ($26,799), staff recommend up to an additional $35,000 be authorized from the Machinery and Equipment Reserve account to fully fund the purchase of the new vehicle and for the installation of the additional equipment.
• Staff will review the fleet replacement plan as part of the 2025-2028 budgeting period to ensure that the Machinery and Equipment Reserve account maintains a sustainable balance.

PUBLIC PARTICIPATION GOAL:

The desired level of public participation for the recommended option is:

[x] Inform [ ] Consult [ ] Involve [ ] Collaborate [ ] Empower [ ] N/A

TIME CRITICAL:

Time is of the essence to ensure that the Parks department can recover its level of service without causing the following hardships:

1. Financial hardships: while ICBC is funding the temporary, short-term compensation of a rental truck, any delay in the purchase of a work truck, or delay as a result of continuing to search for a used equivalent truck, will impose ongoing rental truck costs that may not be compensable through the ICBC claim;
2. Resource hardship: continued use of a rental truck can only remain short-term and temporary. Should budget impacts prevent the continued use of a rental truck, then parks staff would be short one key vehicle, thus creating inefficiencies in the day-to-day work and decreasing the level of service of parks maintenance.

CONCURRENCE:

REVIEWED BY:

ATTACHMENTS:

1. Project Summary C-031 Parks Vehicle Replacement Plan (2024-2028 Financial Plan)